An entity affiliated with championship-winning NASCAR Cup Series operation Hendrick Motorsports is suing former sponsor Hooters of America LLC for $1.7 million, plus interest, for alleged unpaid sponsorship fees.
According to court records from Mecklenburg County, which were first obtained and reported on by The Charlotte Ledger on Wednesday, HMS Holdings LLC filed its complaint against the popular restaurant chain on July 30, suing for breach of contract and unjust enrichment.
The complaint filing comes less than a month after Hendrick Motorsports terminated its eight-year relationship with Hooters, after the motorsports giant claimed the company had “not been able to meet its business obligations”.
Since 2017, Chase Elliott has served as the face of hooters in NASCAR, with the company adorning his NASCAR Cup Series entry for Hendrick Motorsports in 24 events across the last eight seasons, in addition to one-offs in the Xfinity Series (2018) and Truck Series (2020).
Earlier this season, Elliott drove his No. 9 Hooters Chevrolet Camaro to Victory Lane at Texas Motor Speedway, the first victory for the long-time NASCAR sponsor since Alan Kulwicki won the Champion Spark Plug 500 at Pocono Raceway in June of 1992.
Per the complaint, cited by the Charlotte Business Journal in a Thursday report, Hooters was bound by its sponsorship contract to pay four annual installments totaling $1.75 million to Hendrick Motorsports.
Payments were scheduled for March 10, June 10, August 10, and October 10. HMS alleges that Hooters only made a partial payment of $45,000 in March, and then continued failing to make its payments, once June rolled around.
Further, Hooters has represented to HMS that it will not be paying any portion of the remaining two installments for the 2024 term under the Sponsorship Agreement, as amended, that are due on August 10, 2024, and October 10, 2024,” the plaintiff wrote in its complaint against Hooters. “Left with no further options to protect its right and interests, HMS files this action to enforce its right pursuant to the contract at issue.”
TobyChristie.com has reached out to Hendrick Motorsports in an attempt to obtain a statement from the team but has yet to receive a response. A response, if provided, will be added to this story as an update.
