Miami, Florida – A major franchise operator of Popeyes Louisiana Kitchen has filed for Chapter 11 bankruptcy, adding to growing signs of financial strain across the U.S. fast-food industry. Sailormen Inc., which operates 136 Popeyes locations across Georgia and Florida, sought bankruptcy protection last week as it works to restructure nearly $130 million in debt, according to reporting by USA Today.
Sailormen Inc. Seeks Reorganization Under Chapter 11
Court filings show that Sailormen Inc. submitted its Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Florida on Thursday. Chapter 11 allows companies to continue operating while reorganizing their finances and negotiating repayment plans with creditors.
The filings indicate the franchisee’s total debt stands at close to $130 million. Despite the filing, Sailormen did not disclose plans to close any restaurants and currently employs approximately 3,272 hourly workers across its network.
Inflation, Pandemic, and Labor Shortages Cited
In documents reviewed by USA Today, Sailormen pointed to several pressures that contributed to its financial difficulties, including prolonged inflation, the lingering effects of the COVID-19 pandemic, and what it described as an “increasingly limited qualified labor force.”
These challenges have impacted operating costs and staffing across much of the restaurant industry, particularly for large franchise operators managing dozens of locations simultaneously.
A Long-Standing Popeyes Operator
Founded in 1984, Sailormen Inc. was once a multi-state operator with restaurants in Alabama, Florida, Georgia, Illinois, Louisiana, Missouri, and Mississippi. According to court records, the company began scaling back its footprint between 2012 and 2018, selling off many locations to focus primarily on Florida and Georgia.
The franchisee also attempted to sell 16 restaurants in 2023, but that deal ultimately collapsed, leaving Sailormen responsible for ongoing lease obligations tied to those properties.
Popeyes Leadership Says Most Locations Should Stay Open
Peter Perdue, president of Popeyes U.S. and Canada, said the bankruptcy filing is not expected to result in widespread closures. In a note reviewed by Restaurant Business, Perdue emphasized that most Sailormen-operated restaurants remain financially healthy.
“Sailormen has been a successful, growth-oriented franchise organization for many years in our system,” Perdue said. “A large majority of their restaurants are very profitable, in line with our system average (and some above average).”
The Independent has reached out to Sailormen Inc. for comment but has not yet received a response.
Bankruptcy Filing Comes Amid Wider Fast-Food Closures
The Sailormen bankruptcy follows a broader wave of restaurant closures across the fast-food and fast-casual sectors. Earlier this month, drive-through chain Salad and Go shut down all remaining Texas locations and stores in Oklahoma. Colorado-based Noodles & Company has also announced plans to close up to 35 restaurants in 2026 after shutting dozens in 2025.
Meanwhile, Jack in the Box closed multiple underperforming locations last year as part of its “Jack on Track” financial recovery strategy, reflecting continued pressure on restaurant operators nationwide.
What Happens Next
Under Chapter 11, Sailormen Inc. will work with creditors to restructure its obligations while continuing day-to-day operations. Industry analysts say the outcome could serve as a test case for other large franchise operators facing similar challenges from rising costs, labor shortages, and shifting consumer spending patterns.
