A Popeyes Louisiana Kitchen franchisee with 130 locations in Georgia and Florida has filed for bankruptcy.
Sailormen, Inc. operates more than 130 restaurants and is trying to resolve nearly $130 million in debt to lenders so it can revitalize, Fox Business reported Monday.
The move came after the company said factors such as the effects of the coronavirus pandemic, consumer choice, inflation, and competition from better-paying jobs are some of the reasons it needs to file for the protection.
The Fox article continued:
This comes amid a string of eateries that have filed for bankruptcy in recent years. In fact, bankruptcy attorney Daniel Gielchinsky projected last year that a growing number of major restaurant chains will likely continue to file for bankruptcy protection over the coming years as the industry struggles to manage the heavy debt it accumulated during the COVID-19 pandemic.
“Restaurants that exist today may not exist in five years. They’ll be off the map,” Gielchinsky told FOX Business in February 2025. Additionally, consumers will “see a lot of restaurants with a decreased footprint,” he added.
Per USA Today, Sailormen employed over 3,000 hourly workers in its Popeyes locations as of last week. “As of Jan. 16, Sailormen, Inc. has not shared information about potential Popeyes closures due to the bankruptcy filing,” the outlet said.
The restaurant chain tried to sell multiple locations before filing for bankruptcy, according to Restaurant Dive.
However, “That sale fell through and Sailormen remained liable for lease guarantees, the filing states. The franchisee has since fallen behind on rent payments to several landlords. The company also holds a significant unpaid principal loan balance of over $112 million, as well as over $17 million in accrued interest and fees,” the article reads.
Meanwhile, a Restaurant Business report noted that Peter Perdue, president of Popeyes in the United States and Canada, explained that Sailormen has been successful for years and many of its locations are quite profitable.
He then stated, “I can confidently tell you that Sailormen’s announcement does not reflect the healthy unit economics that you are experiencing in your restaurants.” He also said many of the locations under Sailormen will continue serving customers.
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