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Major Popeyes Franchisee Sailormen Files for Chapter 11 in Florida

The filing aims to stabilize a heavily indebted operator following a lender lawsuit over roughly $129 million.

Overview

  • Sailormen submitted its Chapter 11 petition on January 15 in the U.S. Bankruptcy Court for the Southern District of Florida, listing assets and liabilities in the hundreds of millions.
  • The Miami-based franchisee operates more than 130 Popeyes locations in Florida and Georgia, and restaurants are expected to keep serving under court supervision.
  • BMO Bank recently sued over about $129 million in obligations, and the bankruptcy process pauses creditor enforcement while restructuring is pursued.
  • Popeyes’ owner Restaurant Brands International says the brand remains healthy and expects a large majority of Sailormen’s restaurants to continue operating.
  • Court and industry reports attribute the strain to pandemic after-effects, inflation, labor challenges, rent issues, and a failed 2023 sale of 16 stores to Tar Heel Spice.