Hooters no longer family-run
The restaurant chain, famous for both chicken wings and cleavage, has been bought out by a consortium of private investors.
By Miriam Marcus Reimer, TheStreet
Hooters of America said it has been bought out by a consortium of private investors, including Chanticleer Holdings (CCLR).
The group of private investors simultaneously acquired Dallas-based Texas Wings, Hooters' largest franchisee.
"I am so extremely proud of what my father and our team here have built," said Coby Brooks, the CEO of Hooters since 2003 and the son of the late founder. "And I am even more excited about our next phase of growth following this transaction."
Brooks took control of Hooters after his father, Robert H. Brooks, passed away in 2006.
The late Brooks acquired the Hooters concept in 1984 when there were just two locations. The company now boasts 452 restaurants in 44 states and 29 countries.
The Texas Wings acquisition brings 41 company-owned restaurants, which, combined with Hooters' 120 company-operated stores, make up nearly half of all domestic Hooters locations and over one-third of the locations worldwide.
"I am very pleased to join forces with Texas," Brooks said. "Kelly Hall, the majority owner of Texas Wings, which is our largest and among our best franchisees, will bring considerable knowledge and passion to HOA." Hall will have a significant commitment in HOA and will serve on the company's board.
Chanticleer is a Hooters franchisee in South Africa. Financial details of the deal were not disclosed. Chanticleer shares, which trade over the counter, jumped 8% in Tuesday's trading session to $6.75.
Expect changes. Maybe not immediately, but eventually.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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