Following the conclusion of a nationwide sale campaign, the current director and existing management will retain control of the Hooters Group following the outcome of the most recent meeting of creditors held on 19 October 2018. Existing management submitted a DOCA proposal that was accepted by creditors of the Hooters Group which will see the business continue including the perseveration of its workforce.

In simple terms and in this case, a “DOCA” is effectively a binding arrangement with creditors, the company and its director personally.

It is contemplated that this DOCA will now provide an opportunity to:

• recapitalise the Hooters Group.
• compromise the claims of creditors.
• reorganise the business, management and affairs as well as improve operations of the Hooters Group.

“This is a great outcome given that major stakeholders including the Australian Taxation Office were in support of the DOCA which will see in excess of 60 staff across NSW and QLD continue their employment with the Hooters Group. This outcome is effectively at the heart of the Voluntary Administration regime where administrators will attempt to maximise the chances of a company to continue in existence,” said the Group’s Deed Administrator David Iannuzzi of Veritas Advisory.