In July of last year, Hendrick Motorsports disclosed that Hooters, a part-time sponsor for Chase Elliott’s car since 2017, had unfortunately failed to fulfill its business commitments to the team. Due to these unforeseen and regrettable circumstances, the team found it necessary to sever ties with the sponsor.
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There were initial whispers that Hooters would continue its association with Elliott’s Car, despite the company facing significant business hurdles, including the closure of several stores last year, but that did not pan out. According to the latest developments, the chain is now ready to enter bankruptcy proceedings.
Hooters is currently collaborating with its creditors to restructure its operations through bankruptcy, engaging the services of the Ropes & Gray law firm to orchestrate the filing, as reported by Bloomberg.
The media outlet noted that last year, Hooters was grappling with approximately $300 million in debt, a situation that led to the closure of about 40 underperforming restaurants nationwide in 2024.
Should the proposed restructuring prove successful, Hooters might emerge revitalized, mirroring the resurgence experienced by Red Lobster. However, just this week, Hooters closed one of its four “Hoots Wings by Hooters” family-friendly establishments in Chicago.
Last year, Hooters had committed to sponsoring the #9 car in three races during 2024. The company honored this commitment at the Atlanta Motor Speedway and Texas Motor Speedway, with Elliott winning the latter race. Yet, following Hendrick Motorsports’ announcement, Hooters’ emblem has been absent from the #9 car since the Richmond race in August.
Despite recent setbacks and closures, Hooters continues to operate roughly 300 restaurants globally. While the chain has contracted, its competitors, such as the adult arcade Dave & Busters and Twin Peaks — a name alluding to anatomy rather than the David Lynch series — are modestly increasing their footprints.
Currently, Elliott and the #9 team find themselves with one fewer part-time sponsor, prompting a potential search for a replacement. While the team can operate with fewer sponsors, having a strong portfolio of investors enhances their capacity to optimize their cars for upcoming races.
In January of this year, Amazon’s Prime Video stepped in as a primary sponsor for Elliott and Co., committing to a partnership through 2027.
The sponsorship arrangement encompasses three races each year, supplemented by a full-season associate sponsorship annually. Additionally, last year UniFirst also declared their sponsorship support for Elliott’s team, supporting their roster of corporate backers.
