Hooters sold to Chanticleer, ending tussle

The sale, announced Monday, ends nearly three decades of family ownership. The patriarch of the Hooters chain, Robert H. Brooks, tried to expand the business into an airline and NASCAR racing before his death in 2006. The chain, which started in 1983 in Clearwater, Florida, was tied up in litigation in a South Carolina probate court for several years after Brooks' death.

Coby Brooks, president and CEO of Hooters of America since 2003, said his father was often limited by a lack of financial resources.

"Since his passing the requirements of his estate have limited us even further," Coby Brooks said in a statement. "While it is bittersweet to see the end of my family's ownership of the company, I know this new investment will put us in a position to grow rapidly and fully realize the potential of the Hooters brand."

The deal will combine 120 restaurants from Hooters of American with 41 from Texas Wings to create an operating company with 161 company-owned locations in 16 states. The company will control nearly half of all domestic Hooters restaurants and more than one-third worldwide.

Charlotte-based Chanticleer Holdings is a holding company that looks to buy privately-held or small and micro-cap publicly-traded companies. It is also a Hooters franchisee in South Africa.

"I am pleased to finally complete this transaction and fulfill the vision I discussed many times with Mr. Brooks," said Mike Pruitt, president and chief executive of Chanticleer. "The management team has done an amazing job of building the company and the brand despite limited resources."