Bankruptcy Puts More Than 130 Popeyes Locations at Risk

Sailormen Inc., a Miami-based operator of more than 130 Popeyes Louisiana Kitchen restaurants, has filed for Chapter 11 bankruptcy protection. The move, disclosed in court documents filed January 15 in the Southern District of Florida, has placed hundreds of jobs and dozens of locations across Florida and Georgia at risk of closure.

The filing comes after a turbulent period for the franchisee, marked by defaulted loans, rising operational costs, and a failed sale of 16 restaurant locations. Sailormen listed between $100 million and $500 million in both assets and liabilities, according to court documents reviewed by USA Today and RK Consultants.

Sailormen employs nearly 3,000 workers and is among the largest franchisees in the Popeyes system. As of now, no official list of closures has been released, but the company confirmed that location-level decisions are still under review.

What Triggered the Financial Collapse

According to the bankruptcy petition, Sailormen suffered a liquidity crisis triggered by the collapse of a $1 million sale involving 16 Popeyes locations in Georgia. The failed transaction left the company responsible for lease payments on shuttered stores, worsening its financial exposure.

This setback came on top of existing defaults on credit facilities totaling around $130 million, held by BMO Bank N.A. The bank filed a complaint in December 2025 and sought to appoint a receiver, prompting Sailormen to file for bankruptcy to halt the receivership process and protect remaining assets.

Rising labor costs, food inflation, and an “increasingly limited qualified labor force” were also cited as drivers of the company’s $18.8 million net operating loss in 2025, according to bankruptcy disclosures obtained by USA Today.

A Growing List of Debtors in the Chicken Chain Sector

Sailormen’s collapse is the latest in a string of bankruptcies across the fast-food chicken sector. In 2025 alone, Southern Classic Chicken and Harold’s Chicken filed for Chapter 11 protection, despite the category leading all other fast-food sectors in traffic growth over the same period.

Reilly Newman, a brand strategist at Motif Brands, told The Food Institute that chicken chains remain attractive due to their “customization, sauces, and experiential value,” but operational costs have eroded profit margins even at high-volume locations.

While fried chicken chains like Popeyes, Raising Cane’s, and Chick-fil-A continue to dominate foot traffic, their franchisees appear increasingly vulnerable to swings in credit markets, lease obligations, and workforce shortages.

What Happens Next for Employees and Stores

At the time of filing, Sailormen employed over 2,900 hourly workers across Florida and Georgia, many of whom now face uncertainty as the company restructures under court supervision. The filing noted that the organization processes about 1,000 job applicants monthly through digital platforms, suggesting a wide-reaching employment footprint.

Chairman and CEO Robert S. Berg has not issued a public statement, but court documents show the company is seeking to stabilize operations and conduct a marketing process for remaining assets. Analysts suggest store closures are likely in markets where lease liabilities or underperformance pose long-term risks.

For now, the fate of the franchisee’s 136 locations remains undecided. But with more than a dozen unsecured creditors—ranging from food distributors to law firms—waiting for payment, the road to recovery may be steep