Hooters Australia Placed Into Voluntary Administration
The Australian branch of US sports-bar style restaurants known for their all female wait-staff dressed in skimpy uniforms, Hooters Australia, has been placed into voluntary administration again.
The controversial restaurant chain was only bought by new owners two years ago, but on Wednesday documents were filed with the corporate regulator Veritas Advisory, appointing them as administrators for Hotr Australia Pty Ltd and it’s subsidiary companies that operate Hooters in Parramatta, Penrith, Campbelltown and the Gold Coast.
The administrators have said that legacy issues as well as changes in conditions required to meet working visas contributed to the companies struggle in the highly competitive hospitality industry.
However, at this point in time the Hooters restaurants located in Sydney and the Gold Coast will be running business as usual while the profitability of the company is assessed and they work to keep the brand alive.
“The Voluntary Administration process is designed to provide an independent expert review on the performance of a business with the view of maximising the return available for all creditors,” said David Iannuzzi of Veritas Advisory.
“It gives Hooters some breathing space which in turn helps to stabilise and if necessary, restructure the business either with the current owner or a new management team or the opportunity for a sale to another player.”
This is not the first time that Hooters has been in administration during it’s more than 10-years here in Australia. In 2015, five Hooters restaurants in NSW and Queensland were placed into voluntary administration.
Deloitte Australia was appointed at this time to handle the administration however, the restaurants were saved by minority owner and local chairman Sydney Borg who vowed to help breathe new life into the business. Mr Borg is now seeking to negotiate a deed of company arrangement with creditors.
The first creditors meeting will be held at 11am on Monday, August 6 at Veritas Advisory’s Pitt Street officers in Sydney’s CBD.