Hooters settles sponsorship lawsuit with Hendrick Motorsports

Hooters has agreed to pay $900,000 to Hendrick Motorsports to settle a lengthy legal dispute. The NASCAR team had initially sued Hooters for $1.7 million after the restaurant chain failed to meet its sponsorship obligations. Hendrick Motorsports ended its relationship with Hooters in July 2024, stating that the chain could not pay its bills. Hooters had been a primary sponsor for NASCAR driver Chase Elliott since 2017 but struggled financially. This settlement marks the end of Hooters' ties to NASCAR. Reports indicate that Hooters is facing potential bankruptcy amid rising costs and a decline in customer demand. The chain has already closed about 40 underperforming restaurants and may shut down more of its remaining locations soon. Hooters first entered the NASCAR scene in the early 1990s and enjoyed success with several drivers over the years. However, the brand has faced many controversies that have impacted its reputation.