Established in 1972 in a suburb of New Orleans, fried-chicken chain Popeyes has been shedding store locations across Florida and Georgia since the start of the year after one of its main franchisees filed for Chapter 11 bankruptcy in January 2026.
Miami-based Sailormen Inc. filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Florida to restructure more than $129 million in debt that its legal representatives said was accrued due to a combination of “the national impact of the COVID-19 pandemic on restaurant operations, consumer choice, [and] high inflation.”
Sailormen has since closed 39 stores across the two states while selling 97 others through a court-supervised process. On Oct. 22, a Florida judged announced plans to approve a settlement for the Chapter 11 exit path that will give the Popeyes franchisee a way out of the bankruptcy. At the time Sailormen filed for bankruptcy, it cited as much as $342 million in total liabilities that it attributed to rising operating costs and the snowballing effect following the covid-19 pandemic.
Florida bankruptcy judge to approve exit path for Popeyes Franchisee Sailormen: the details
The deal set to be approved by Florida Bankruptcy Judge Robert A. Mark will see the $16.6 million that the company generated from selling off 97 Popeyes restaurants to buyers like Pulse Restaurant Group and Popeyes Corporate toward covering some of its debts.
According to the details of the deal first reported by Law360, both Popeyes and several other creditors agreed to take a cut on what they are owed and absorb financial losses in order to get the franchisee out of bankruptcy.
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“The auction process has concluded, and 97 of the original 136 restaurants will now be in the hands of great, local operators who are well-suited to reinvest in their businesses and deliver excellent service for guests in their communities,” a Popeyes spokesperson said to Nation’s Restaurant News in June 2026.
The closures and sales were previously estimated to save the company over $1 million per year.
Popeyes
What is happening with Popeyes and Sailormen going into 2027
Sailormen also filed for Chapter 11 protection after a sale 16 restaurants to Georgia buyer Tar Heels Spice fell through at the eleventh-hour in 2023 and left the company stuck paying the lease on the properties.
It had also had to close several underperforming restaurants as it faced mounting debt and lawsuits over what it owed to creditors. Throughout 2026, different bankruptcy courts approved the sale of additional restaurants and disputes around everything from post-petition royalties to a $2.5 million escrow deposit from hedge fund firm RFI Ventures LLC.
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The franchisee bankruptcy does not directly affect Popeyes, which is part of the wider Restaurant Brands International, but economic trends are showing that the demand for fried chicken is cooling.
In the first quarter of 2026, Popeyes same-store sales fell by 6.5% compared to the previous year. The approximate $190 million that the company generated in that quarter was the worst performance seen at the chain in the last 20 years.
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