This afternoon, a judge approved the sale of Hooters to Wellspring Capital Management, a private-equity company based in New York. But not without complication: Chanticleer Investments LLC is attempting to block the sale—and buy the chain itself.
Either way, new owners
“could reinvigorate the company,” said Darren Tristano, an executive vice president at Technomic, which tracks Hooters. “The actual model may be becoming a bit tired, and it may be time to re-image.”
So what does he predict for the chain and its following?
The chain could venture into fast-casual-style restaurants, a middle ground between full-service restaurants and fast food, or improve its takeout business.
Hooters to go? We’re skeptical. But it’s a slim possibility, says Tristano.
Regardless of who manages the chain in the future, it is “very unlikely with the strength of the Hooters brand that it would go away.”