Popeyes Franchisee with 136 Outlets Declares Bankruptcy, Citing $18M Loss in 2025
A franchise operator with 136 Popeyes Louisiana Kitchen outlets has declared Chapter 11 bankruptcy. The company, Sailormen Inc., filed for protection in U.S. Bankruptcy Court in Miami. This decision comes after significant financial losses.
Popeyes Franchisee Faces $18M Loss in 2025
In its bankruptcy filing, Sailormen reported a staggering net operating loss of over $18 million for the year 2025. Despite achieving sales surpassing $223 million, this loss reflects substantial operational challenges.
Details of the Bankruptcy Filing
David Baker, the chief restructuring officer and managing partner at Aurora Management Partners, outlined the company’s financial predicament. Sailormen now has assets estimated at over $232 million, juxtaposed with liabilities exceeding $342 million.
- Number of Outlets: 136 Popeyes restaurants
- States Operated: Florida and Georgia
- Employees: Over 3,300
- 2025 Sales: Over $223 million
- 2025 Net Operating Loss: $18 million
- Assets: $232 million
- Liabilities: $342 million
Background on Financial Struggles
Sailormen’s financial difficulties have been linked to various factors, including the aftermath of the COVID-19 pandemic, rising borrowing costs, and shifts in consumer behavior. Attempts to sell 16 restaurants to alleviate these issues were ultimately unsuccessful.
Last month, BMO Bank, Sailormen’s primary lender, filed a complaint in New York seeking federal oversight of the company’s assets. In response, Sailormen opted for Chapter 11 protection, believing this route would better serve the interests of all stakeholders, not just lenders.
Current Status of Operations
Despite the bankruptcy filing, it seems that Sailormen’s Popeyes locations will remain open for business. The company continues to operate without immediate plans to close any outlets.
