A Texas-based restaurant group, Hooters of America, has filed for bankruptcy protection in Texas as part of a strategic move to manage its accumulated debt through the sale of its company-owned restaurants.

The company currently operates 151 locations directly and a further 154 venues through franchise partners, predominantly in the United States.

Despite the bankruptcy filing, Hooters announced that its restaurants will continue to operate in their 'usual manner' throughout the transition process.

Similar to many dining chains, Hooters has faced substantial challenges recently, including increases in wages and operating costs, combined with a decline in customer traffic.

In a press release, CEO Sal Melilli emphasized that 'the iconic Hooters restaurants will remain,' referring to the announcement as a crucial step in fortifying the company's financial position.

Plans are in place for the sale of restaurants to two of Hooters' franchise partners, who already manage the chain's 14 locations with the highest customer traffic in Florida and Illinois.

The buyers include some of the original founders of Hooters, who have expressed a commitment to 'bringing the brand back to its roots' and enhancing its family-friendly appeal, although specific details regarding these changes were not elaborated upon in the announcement.

The company's current estimated value has not been disclosed and is subject to approval by a U.S. bankruptcy judge.

The bankruptcy proceedings are anticipated to be completed within a four-month timeframe.

Hooters, which was founded in 1983, rose to prominence due in part to its distinctive waitstaff, mainly composed of young women wearing form-fitting t-shirts, known as 'Hooters Girls.'