Facing financial difficulties and rising costs, Hooters, known for its waitstaff and wings, filed for Chapter 11 bankruptcy. The company plans to sell its 100 company-owned restaurants to two franchisee groups, aiming for a swift exit from bankruptcy within 90-120 days. This restructuring, involving a founder-led buyout, intends to return the brand to its roots and improve its financial stability. While business operations continue, Hooters is evaluating its operational footprint, potentially leading to further location closures.
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Just Eat Takeaway, the European meal delivery giant, is selling its US subsidiary Grubhub to Wonder, a restaurant chain led by former Walmart executive Marc Lore, for $650 million. This divestiture comes four years after Just Eat acquired Grubhub for $7.3 billion, seeking to expand its reach into the lucrative US market. The sale marks a retreat for Just Eat, which faced pressure from investors following the decline in pandemic-fueled food delivery demand. Just Eat believes the deal will accelerate its growth and provide Grubhub with a suitable future under Wonder’s leadership. The transaction is expected to close in early 2025, subject to regulatory approval.
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TGI Fridays has filed for Chapter 11 bankruptcy protection, blaming the impact of the Covid-19 pandemic. The company intends to use the bankruptcy process to explore alternatives to ensure its long-term viability. The process will affect the parent company, which operates 39 restaurants, but not its franchisees. The company secured funding to allow all locations to continue operation while it navigates bankruptcy. The chain, which began in 1965, experienced significant financial struggles from the pandemic and never fully recovered.
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John Q. Hosedrinker