Dozens of Popeyes Restaurants Impacted After Franchise Owner Files Chapter 11

Dozens of Popeyes Restaurants Impacted After Franchise Owner Files Chapter 11

ATLANTA — Several Popeyes restaurants have closed after a major franchise operator filed for bankruptcy earlier this year, raising concerns about the future of some locations across the Southeast.

According to court filings, Sailormen Inc., a large Popeyes Louisiana Kitchen franchisee operating 136 locations in Georgia and Florida, filed for Chapter 11 bankruptcy protection in January.

In the months following the filing, more than a dozen Popeyes restaurants have shut down, with additional closures revealed in a recent bankruptcy court document.

Three Additional Closures Revealed in Court Filing

A March 10 court filing showed that Sailormen Inc. closed three additional restaurants prior to filing for bankruptcy.

All three of those locations were in Georgia, according to the filing.

The company requested court approval to reject the unexpired leases for the closed restaurants, a legal move commonly used during bankruptcy proceedings.

The filing stated that shutting down those locations could reduce operating expenses by more than $1 million annually.

Company Cites Inflation and Labor Shortages

In bankruptcy documents filed in the Southern District of Florida, Sailormen Inc. cited several economic challenges that contributed to its financial struggles.

The company pointed to:

  • Rising inflation
  • Financial pressures from the COVID-19 pandemic
  • An increasingly limited qualified labor force

These factors, the company said, significantly impacted operating costs and staffing across its restaurant locations.

Franchise Operator Once Managed Hundreds of Locations

Sailormen Inc. has been part of the Popeyes franchise system for decades.

The company was founded in 1984 and once operated restaurants across multiple states, including:

  • Alabama
  • Florida
  • Georgia
  • Illinois
  • Louisiana
  • Mississippi
  • Missouri

However, the company gradually sold many of its restaurants between 2012 and 2018 as part of a restructuring effort.

Previous Attempt to Sell Restaurants Fell Through

Court documents also reveal that Sailormen attempted to sell 16 restaurant locations in 2023, but the deal ultimately collapsed.

The failed sale added further financial strain to the franchisee as it continued managing dozens of locations.

Popeyes Leadership Says Many Locations Will Remain Open

Despite the closures, Popeyes leadership has indicated that most restaurants operated by Sailormen Inc. are expected to remain open.

Peter Perdue, president of Popeyes in the U.S. and Canada, said earlier this year that many of the franchisee’s restaurants are still performing well.

“A large majority of their restaurants are very profitable, in line with our system average — and some above average,” Perdue said in a statement.

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Restaurant Closures Affecting Several Chains

The Popeyes closures come as several other restaurant chains across the United States have also announced store shutdowns.

Recent closures include:

  • Salad and Go, which closed 25 remaining Texas locations and 11 stores in Oklahoma
  • Noodles & Company, which plans to close up to 35 restaurants in 2026
  • Jack in the Box, which shut down dozens of underperforming locations last year

Industry analysts say rising costs, labor shortages, and changing consumer spending habits continue to challenge many restaurant operators.

For now, Popeyes officials say they expect the majority of Sailormen Inc.’s locations to continue operating while the bankruptcy process moves forward.

What do you think about these restaurant closures? Share your thoughts respectfully in the comments below.

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