A large franchise operator within the Popeyes Louisiana Kitchen system has sought bankruptcy protection after years of financial strain culminated in a liquidity crisis marked by mounting debt, failed sales efforts, and intensifying legal disputes. The company, which operates dozens of Popeyes restaurants across the Southeast, filed for Chapter 11 on January 15 in an effort to restructure its obligations while continuing day-to-day operations.
The bankruptcy petition was submitted by Sailormen Inc., a Miami-based restaurant operator that oversees approximately 136 Popeyes locations in Florida and Georgia. The filing does not involve Popeyes’ corporate parent and applies only to the independently owned franchisee. Sailormen voluntarily initiated the Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Florida, signaling its intention to remain in control of its assets while it works through a court-supervised reorganization.
Although Sailormen reported more than $223 million in revenue during 2025, the company was unable to translate those sales into profitability. According to statements provided in court filings, the franchisee recorded an operating loss exceeding $18 million for the year. David Baker, the company’s chief restructuring officer and a managing partner at Aurora Management Partners, attributed the losses to a combination of high leverage, rising costs, and operational setbacks.
Court documents indicate that Sailormen entered bankruptcy burdened by roughly $130 million in debt. As of January 12, the company reported total assets of more than $232 million, while its liabilities exceeded $342 million, creating a substantial imbalance that left the business unable to meet its financial obligations as they came due.
The filing outlines a pattern of challenges that began well before the bankruptcy petition. In 2023, Sailormen attempted to divest 16 underperforming Popeyes restaurants located in Georgia. The proposed transaction ultimately collapsed, leaving the company responsible for ongoing lease guarantees associated with the properties. That failed sale, according to court records, worsened Sailormen’s cash flow constraints and increased its exposure to landlord claims.
As financial pressure intensified, Sailormen began falling behind on rent payments at multiple locations. Several landlords responded by pursuing legal action, while vendors also initiated lawsuits seeking payment for unpaid goods and services. These disputes added to the company’s mounting legal costs and further strained relationships with key business partners.
The situation escalated in December 2025 when Sailormen’s largest creditor, BMO Bank N.A., took legal action to protect its interests. The bank filed a lawsuit seeking the appointment of a federal receiver who would displace Sailormen’s existing management team and assume control over the company’s operations and assets. Such a move would have stripped Sailormen of decision-making authority and placed the future of the business largely in the hands of an external overseer.
Rather than accept that outcome, Sailormen opted to seek Chapter 11 protection. In its filing, the company argued that remaining in control as a debtor-in-possession would better serve the interests of creditors, employees, and other stakeholders. By pursuing bankruptcy reorganization instead of receivership, Sailormen aims to preserve operational continuity while negotiating new terms with lenders and counterparties.
Sailormen’s history within the Popeyes system spans nearly four decades. The company was founded in July 1987 and began with a modest footprint of 11 Popeyes restaurants in the Miami area. Over the next several years, it steadily expanded, reaching 15 locations by the end of 1995.
The company’s growth accelerated in the mid-1990s when it moved beyond Florida for the first time. Sailormen acquired five underperforming Popeyes units in Birmingham, Alabama, marking its initial expansion into another state. That acquisition set the stage for a period of rapid growth fueled by additional purchases.
Between 1996 and 2000, Sailormen completed eight more acquisitions, some involving large clusters of restaurants. One deal alone added as many as 72 locations to its portfolio. By the turn of the millennium, the company operated restaurants across seven states: Florida, Alabama, Georgia, Illinois, Louisiana, Missouri, and Mississippi.
Over time, however, Sailormen began to reconsider the scope of its geographic footprint. From 2012 through 2018, the company divested its operations in Alabama, Illinois, Louisiana, Missouri, and Mississippi. These sales were part of a strategic shift aimed at concentrating resources on development and operations in Florida and Georgia, markets the company viewed as offering stronger long-term growth potential.
Today, Sailormen’s restaurant portfolio is limited to those two states, where it operates 136 Popeyes locations. The company is owned by Interfoods of America, Inc., a Nevada-based corporation that serves as its parent entity.
At the time of the bankruptcy filing, Sailormen reported a workforce of 3,306 employees. That total includes 34 salaried staff members and 3,272 hourly workers. The vast majority of employees—3,272 individuals—work at the restaurant level, while 29 serve as area managers or operations directors overseeing multiple locations. Of the overall workforce, 746 employees are classified as full-time, meaning they are scheduled to work at least 35 hours per week.
In its Chapter 11 petition, Sailormen outlined a multi-pronged restructuring strategy. The company plans to stabilize restaurant operations, explore potential sale opportunities for some or all of its assets, renegotiate lease agreements with landlords, and restructure its debt obligations. Throughout the process, Sailormen intends to keep its restaurants open and continue serving customers.
The filing emphasizes that the bankruptcy is designed to provide breathing room while the company works toward a more sustainable financial structure. Management has expressed confidence that the reorganization process will allow Sailormen to address its most pressing liabilities without shutting down its operations or liquidating its assets.
Popeyes Louisiana Kitchen’s corporate leadership has sought to distance the brand from the franchisee’s financial difficulties. In internal communications reviewed by Restaurant Business, company executives stressed that Sailormen’s bankruptcy reflects challenges specific to that operator rather than broader issues within the Popeyes system.
Peter Perdue, president of Popeyes U.S. and Canada, acknowledged Sailormen’s financial strain but described it as an outlier within the franchise network. In his message, Perdue noted that Sailormen carries more debt than is typical among Popeyes franchisees and characterized its capital structure as unusually leveraged.
Despite those challenges, Perdue praised Sailormen’s long-term track record, describing it as a franchise organization that has delivered growth and success over many years. He emphasized that a significant majority of Sailormen’s restaurants are profitable, performing in line with or above the systemwide average.
Perdue also sought to reassure stakeholders that most of Sailormen’s locations are expected to remain open throughout the restructuring process. According to his message, the Chapter 11 filing is not anticipated to disrupt operations at the restaurant level or affect customer access to Popeyes locations in Florida and Georgia.
As Sailormen moves forward in bankruptcy court, its case highlights the pressures facing large, highly leveraged restaurant operators in a challenging economic environment. Rising labor costs, higher interest rates, and shifting consumer behavior have placed added strain on franchisees, particularly those carrying substantial debt from years of expansion.
For Sailormen, the outcome of the restructuring will depend on its ability to negotiate favorable terms with creditors, streamline operations, and potentially attract buyers willing to invest in its restaurant portfolio. While the Chapter 11 process offers a path forward, it also underscores the financial risks associated with aggressive growth strategies in the competitive fast-food industry.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
