4. ASSETS HELD FOR SALE

The Company entered into Letters of Intent for the sale of its Hooters Nottingham and Hooters Tacoma locations in the first quarter of 2018. Accordingly, the assets of those operations were reclassified to Assets Held for Sale on the accompanying condensed consolidated balance sheet and the Company recognized an impairment charge of $1.7 million for the six months ended June 30, 2018, primarily related to the impairment of goodwill and reversal of approximately $720 thousand of foreign exchange losses previously classified in Other Comprehensive loss. The potential buyer of the Hooters Nottingham facility has indicated that their funding is dependent on the sale of other properties and the transaction may be delayed or may not close. Management is continuing discussions with the potential purchaser and evaluating other alternative to market the property for sale. The letter of intent for the sale or the Tacoma location has expired as of the date of this report. The Company is continuing to explore the disposition of those assets to other potential buyers. Management determined that, as of June 30, 2018, it was appropriate to continue to classify those assets as held for sale and will continue to evaluate the classification as the process continues in the second half of 2018. Management believes that the carrying amount of the assets held for sale reflects the current net realizable value of the properties and that no additional impairment adjustment is warranted at this time.