Hooters agreed to pay Hendrick Motorsports $900,000 to conclude a legal dispute, severing its final ties to NASCAR this week. The restaurant business, which was once a major sponsor in the racing world, has ended a turbulent chapter with the settlement. After the business fell behind on sponsorship payments, Hendrick Motorsports launched a lawsuit against it, initially requesting $1.7 million. Citing outstanding invoices, the NASCAR powerhouse team ended its collaboration with Hooters in July 2024. The arrangement reached this week represents the last break in their relationship.
The split came after Hooters, which is well-known for its chicken wings and skimpy server attire, experienced months of financial hardship. Last summer, Hendrick Motorsports expressed gratitude for previous victories while acknowledging the split. “Hooters contributed to our shared victories on and off the track,” the team revealed in a statement released in July 2024. But it emphasized that the connection ended because of the brand’s incapacity to pay its debts. In the 1990s, Hooters made a big splash in NASCAR by putting their brand on the late champion Alan Kulwicki’s vehicle. Driver Chase Elliott, who won the 2020 drivers’ championship, later brought success to the chain. However, the brand has faced increasing difficulties in recent years.
Challenges to the Hooters
Brand As it struggled with expenses, the corporation reduced its reach in June 2024 by closing over 40 unprofitable facilities in places like Florida, Kentucky, and Texas. With only about 300 locations left, the chain may soon close more. According to Bloomberg, it hired the legal firm Ropes & Gray to help it deal with its financial difficulties, and the paperwork should be completed in two months. The business, which was once a cultural powerhouse, flourished in the 1980s thanks to Super Bowl celebrities’ sponsorships. The attraction of its “Hooters Girls”—which included future stars like Chrissy Teigen and Katherine Ryan—fueled its explosive expansion. The company even opened a hotel in Las Vegas and Hooters Air.
Scandals, however, diminished its luster. Hooters’ attractiveness was diminished by sexual harassment lawsuits, discrimination allegations, and pushback over plans for skimpier uniforms. The chain was a shadow of its former self as a result of its inability to adjust to changing consumer preferences. The $900,000 deal ends a tense fight for Hendrick Motorsports. Hooters must now deal with its diminishing history in NASCAR and beyond as the organization turns its attention to its racing future.
