Northeast Hooters franchises can remain open through May

<p>Boston Hooters waitresses can keep their orange shorts _ and their jobs _ after Hooters of America Inc. agreed to back off its bid to strip nine Northeast Hooters restaurants of their franchise agreements.</p><p>Judge Joan N. Feeney of the U.S. Bankruptcy Court in Boston said the nine Hooters restaurants in New England and upstate New York can stay open as long as they pay royalties and advertising fees to the Atlanta-based company.</p><p>Hooters of America had sought to terminate its franchise agreements with the owners of one dozen Hooters restaurants in the Northeast after the owners put the restaurants into Chapter 11.</p><p>"The restaurants are open and ready for business," said bankruptcy lawyer Adam J. Ruttenberg of Looney & Grossman, which represents the owners of the Hooters, known for its spicy chicken wings and scantily clad waitresses.</p><p>The Northeast Hooters are controlled by a Vermont company, New England Wings Inc., that in turn is owned by Michael J. Walsh and Paul Kraemer. Walsh and Kraemer, both of Sudbury, Mass., are also the controlling shareholders of the upstate New York franchises.</p><p>Under a deal reached between Hooters and the franchise, the owners have up to May 8 to decide which restaurants they wish to keep open.</p><p>The franchises filed for bankruptcy in October after butting heads with its corporate parent over the operation of its four struggling Hooters in upstate New York.</p><p>The franchise owners have since closed three of those restaurants, according to Ruttenberg. The nine remaining Hooters are located in Massachusetts, Rhode Island, New Hampshire and New York.</p><p>The Hooters restaurants filed for Chapter 11 bankruptcy in Boston on Oct. 6, listing assets of $1.2 million and debts of $5.9 million.</p>