Hooters officially cut its final ties with the world of NASCAR this week after agreeing to pay the Hendrick Motorsports team $900,000 to settle a legal dispute.
Hendrick Motorsports had originally sued Hooters for $1.7million after the struggling restaurant chain failed to pay sponsorship agreements it had agreed to.
The team ended its relationship with Hooters, the restaurant chain known for chicken wings and skimpy wait-staff outfits, back in July 2024.
Hooters had signed up to be a primary sponsor for NASCAR Cup Series champion Chase Elliott at three races.
But, despite sponsoring Elliott since 2017, the struggling chain could not fulfill its financial obligations.
A resolution has now been announced though with Bob Pockrass of Fox Sports reporting Hooters has agreed to pay Hendrick Motorsports $900,000.
Hooters cut ties with the world of NASCAR this week after settling with Hendrick Motorsports
Hooters paid the team $900,000, despite Hendrick Motorsports suing them for $1.7million
In July last year, Hendrick Motorsports thanked Hooters for it contributions since coming on board ‘to our shared successes both on and of the track.’ But it said the chain could not pay its bills.
‘Due to these unfortunate and unexpected circumstances, and despite extensive efforts on both sides to identify a workable solution, it became necessary for Hendrick Motorsports to end the relationship,’ the team’s statement said.
Hooters broke into NASCAR in the early 1990s, its logo on the car of late NASCAR series champion Alan Kulwicki.
It enjoyed similar success with Elliott, who took the drivers’ title in 2020.
But it emerged last month that Hooters was facing potential bankruptcy, amid rising costs and a drop in demand for eating out.
The chain enlisted law firm Ropes & Gray to assist with the filing, which will likely go through in the next two months, according to Bloomberg.
Hooters, which shut approximately 40 ‘underperforming’ restaurants to cut costs in June 2024, including in Florida, Kentucky, Rhode Island, Texas and Virginia, will likely soon close more of the 300 remaining locations.
Hooters had signed up to be a primary sponsor for Chase Elliott but failed to fulfill the deal
The chain’s precarious position is a far cry from the heyday of the sports-style bar, which saw immense success in the ’80s following a show of support from Super Bowl players.
Hordes of customers quickly became gripped by the appeal of the Hooters Girls, who at one time included comedian Katherine Ryan and model Chrissy Teigen, which allowed the brand to expand to open the Hooters Hotel in Las Vegas and open ‘Hooters Air’.
However, a string of controversies, including sexual harassment claims, discrimination cases, and a proposed introduction of even skimpier uniforms, has tarnished the brand’s reputation over the years as it has struggled to move with the times.
