The NASCAR world has been buzzing with speculation surrounding one of Chase Elliott’s most memorable past sponsors, as reports swirl that the company could be heading toward bankruptcy just over a year after a contentious and highly publicized split from Hendrick Motorsports. The sponsor in question is Hooters, the iconic restaurant chain whose orange-and-white branding once dominated the hood of Elliott’s No. 9 Chevrolet in the NASCAR Cup Series.

What began as a high-profile partnership that brought fun, visibility, and a touch of controversy to the sport has now devolved into a cautionary tale of financial mismanagement, legal battles, and mounting debt.

Hooters first linked up with Chase Elliott in 2017, stepping in as a primary sponsor for the young driver who had taken over the famed No. 9 ride at Hendrick Motorsports following the retirement of Chase’s predecessor. The deal made sense on paper: Hooters had a long history in motorsports, dating back to the 1980s and 1990s when it backed drivers like Greg Biffle and others during NASCAR’s boom years. The brand’s flashy, fan-friendly image aligned well with Elliott’s rising popularity as one of the sport’s most marketable stars.

Fans loved seeing the bold Hooters logos flashing around tracks, and Elliott delivered on the track too, securing multiple wins with the sponsorship in place, including memorable victories that kept the partnership in the spotlight.

For years, the arrangement appeared stable. Hooters served as a part-time but significant primary sponsor, appearing on Elliott’s car for select races each season. The visibility helped keep the brand relevant in a changing cultural landscape, even as Hooters faced criticism over its business model and hiring practices. Behind the scenes, however, cracks were forming. By early 2024, financial pressures at the company became impossible to ignore. Rising operational costs, shifting consumer preferences away from casual dining chains, and broader economic challenges hit Hooters hard.

Reports indicated the chain was carrying hundreds of millions in debt, with numerous restaurant locations closing across the country as part of cost-cutting measures.

The breaking point came in mid-2024 when Hooters abruptly stopped meeting its sponsorship obligations to Hendrick Motorsports. The team, led by owner Rick Hendrick, had counted on the funds for the No. 9 program, which included a multi-million-dollar agreement for primary sponsorship slots. After an initial payment, subsequent installments went unpaid, prompting Hendrick Motorsports to file a lawsuit in July 2024 seeking over $1.7 million plus interest and fees. The legal action stemmed from a contract that required Hooters to pay approximately $1.75 million across four installments for the 2024 season, covering several primary appearances on Elliott’s car.

The lawsuit sent shockwaves through the NASCAR community. It was rare for a team of Hendrick’s stature to air such grievances publicly, but the unpaid sums left little choice. The split was described by insiders as “ugly,” with both sides digging in as negotiations stalled. Hooters’ departure left a gap on the No. 9 Chevy, forcing Hendrick to scramble for replacement sponsors mid-season. Coca-Cola stepped in for some events, and by 2025, bigger names like Amazon Prime Video secured deals with the organization, helping to offset the loss.

For Elliott personally, the change was noticeable but not devastating—his performance remained strong, and his fan base stayed loyal regardless of the paint scheme.

As the dust settled from the legal dispute, Hooters agreed to a settlement in March 2025, paying Hendrick Motorsports $900,000—a compromise that was less than half of the original demand but still a meaningful recovery for the team. The settlement provided some closure, but it did little to alleviate the broader financial woes plaguing the restaurant chain. By late 2025 and into early 2026, whispers of bankruptcy grew louder. Industry analysts pointed to Hooters’ mounting debt, estimated in some reports at around $300 million, coupled with ongoing store closures and declining revenue.

The chain’s once-dominant presence in casual dining had eroded, squeezed by competitors offering healthier options, delivery-focused models, and more modern branding.

Rumors of an impending bankruptcy filing surfaced prominently in February 2025, with outlets reporting that Hooters was “on the verge” of such a move, roughly one year after the messy exit from NASCAR. The timing felt poetic: just as the sport had moved on, with Elliott’s car now featuring fresh partnerships and the team thriving, the former sponsor appeared poised for a dramatic downfall. NASCAR fans took to social media to reflect on the irony, with some joking that Hendrick’s lawsuit might have been the final straw pushing Hooters toward insolvency.

Others expressed sympathy for the brand that had been a fixture in the sport for decades, lamenting how quickly fortunes can change.

For Chase Elliott, the saga serves as a reminder of the volatile nature of sponsorship in professional sports. The 2020 Cup Series champion has navigated the transition smoothly, continuing to rack up wins and contend for championships. His current primary sponsors provide stability, and the No. 9 team remains one of the strongest in the garage. Yet the Hooters chapter lingers as a what-if story—what if the payments had continued, what if the brand had weathered the storm, what if the partnership had endured into the late 2020s?

As of March 2026, no official bankruptcy filing has been confirmed from Hooters, but the rumors persist amid reports of restructuring talks, potential asset sales, and further belt-tightening. The chain’s future hangs in the balance, with industry observers watching closely to see if it can avoid the Chapter 11 fate that has claimed other casual dining giants in recent years. In the meantime, NASCAR has proven resilient, quickly filling voids left by departing sponsors and continuing its upward trajectory in popularity and television deals.

The Hooters-Elliott partnership will be remembered fondly by many for its energy and spectacle, but its abrupt and contentious end underscores a harsh reality: even billion-dollar brands—Hooters was once valued in the high hundreds of millions or more in its heyday—are not immune to economic pressures. For Chase Elliott and Hendrick Motorsports, the episode is now firmly in the rearview mirror, a chapter closed amid the roar of engines and the pursuit of the next checkered flag. The sport moves forward, but the lessons from this high-stakes fallout remain relevant for teams, drivers, and sponsors alike in an ever-changing landscape.