Hendrick Motorsports Files Lawsuit Against Hooters

What’s Happening?

Hendrick Motorsports and Hooter’s ugly breakup has continued into the courtroom. HMS Holdings LLC has taken the first steps in a court battle with Hooters of America LLC, filing a complaint against the food chain three weeks ago.

• The Charlotte Ledger initially reported that Hendrick Holdings LCC filed the complaint on July 30. HMS and Hooters formally parted ways via a statement from the team on July 1. HMS stated on that day, “In recent months, however, Hooters has not been able to meet its business obligations to our organization.” The suit is for the roughly $1.75 million in missed payments to the team.
• Hooters is a restaurant chain based in Atlanta, Georgia. It sponsored Cup Series entries in NASCAR as early as 1988, with a long run with Alan Kulwicki. The sponsor returned with Georgia native Chase Elliott in 2017. The pair won the sponsor’s first race since June 14, 1996, at Texas Motor Speedway this spring before the now messy breakup between the two.
• Like many chain restaurants, Hooters faced financial losses and the closure of franchises nationwide. Hooters initially set out to sponsor three races: Atlanta, Texas, and Richmond. The sponsor left Elliott without a sponsor at Richmond and failed to pay HMS for prior races, leading to the suit.

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