Popeyes Franchisee With Over 130 Locations Files for Bankruptcy

A Popeyes franchisee with 136 locations throughout Georgia and Florida filed for bankruptcy protection on Jan. 15 in the U.S. Bankruptcy Court in the Southern District of Florida, Miami Division.

The fast-food restaurant chain, famous for its Louisiana-style cuisine, specializes in signature dishes such as spicy Cajun chicken, red beans and rice, biscuits, and other New Orleans-inspired selections.

The franchisee, Sailormen, Inc., attributed its mounting financial troubles over the past year to “various macroeconomic factors,” including the trailing national impact of the COVID-19 pandemic on restaurant operations, consumer choice, high inflation, increased borrowing rates, and a limited qualified labor force.

As a result of low performance and increasing losses, the company tried to sell 16 of its locations in an attempt to improve financial performance and stabilize the business. However, the purchaser unexpectedly closed and Sailormen remained liable on the lease guarantees. Subsequently, the franchisee has fallen behind on rent payments to several landlords.

For the fiscal year ending 2025, Sailormen’s sales totaled over $233 million, with a net operating loss of $18.8 million. As of Jan. 12 of this year, it has reported assets of more than $232.5 million, but liabilities of more than $342.6 million.

What started out nearly 40 years ago as a healthy new enterprise has taken an unexpected detour.

Founded in 1984 to own and operate Popeyes restaurants, Sailormen was acquired by Bob Berg and Steve Wemple in 1987. At the time, the company operated 11 stores in the Miami metro.

The new owners grew the locations to 15 stores by the end of 1995, then acquired underperforming stores in Birmingham, Alabama. From 1996 through 2000, the company completed eight more acquisitions and began to establish additional restaurants in Georgia, Illinois, Louisiana, Missouri, and Mississippi.

However, between 2012 and 2018, Sailormen sold off its locations in all states except Georgia and Florida, where it currently operates 136 Popeyes restaurants. Interfoods of America, Inc., a Nevada firm, owns 100 percent of Sailormen’s outstanding stock.

In court documents, Sailormen is asking to utilize the lender’s cash collateral, as a solution to help reorganize the business, maintain employees and keep the business in operation as it seeks a prompt sale process. That collateral amounts to over $8.8 million.

As of its Chapter 11 petition date, the company retains 3,306 employees, 34 of whom are salaried and 3,272 who are paid hourly. According to the court documents, many employees have not been paid and are currently owed a total of $637,000. The company is also responsible for paying employee benefits totaling $80,000.

“If amounts owed are not paid, insurance reimbursements not made, or other benefits delayed, employees may suffer extensive personal hardship and, in some cases, will be unable to meet the basic living needs,” the document states.

“This could cause significant harm to employees, their families and potentially make it difficult or impossible for them to continue working for the debtor.”

The franchisee contends that those funds, along with cash-on-hand and revenue generated from its ongoing business, will offer both stability and liquidity for a successful outcome through a sale.

“The requested relief will also assist the debtor in maintaining employee morale, retaining employees, and establishing certain other administrative procedures to promote a smooth transition into, and eventually out of, Chapter 11,” the document states.