Major Popeyes franchisee in Florida and Georgia files for Chapter 11

Sailormen Owes $342 Million in Debt

Sailormen Inc. has been serving up spicy chicken in Florida since the 1980s and expanded to Georgia in the mid-1990s. Now the Miami-based company is fighting to survive.

The franchisee filed for Chapter 11 bankruptcy on January 15, 2026, listing about $130 million in debt and total liabilities exceeding $342 million. The company reported over $223 million in sales but had a net operating loss of over $18 million in 2025.

What pushed one of the largest Popeyes operators in the country to this point involves a failed sale, an allegedly shady buyer, and a lender that wanted management gone.

A $1 Million Sale Fell Apart

In late 2023, Sailormen entered into an agreement with a buyer, Tar Heels Spice, to sell 16 of its Georgia restaurants as part of a restructuring plan. The idea was simple: dump the underperforming locations and focus on the stronger markets. The deal would have helped boost cash flow.

But Tar Heels Spice never closed the transaction. The deal fell through, further straining the company’s finances.

What was supposed to be a lifeline turned into an anchor.

The Buyer Allegedly Took the Cash

Court documents paint an ugly picture of what happened next.

Tar Heels Spice set aside $1 million to cover expenses, including rent, before the transaction closed. However, Sailormen alleges that the funds were not made accessible to them.

McManus filed for Chapter 7 bankruptcy in April 2025.

Sailormen Got Stuck With Leases

After Tar Heels funded an operating account with the required $1 million but allegedly did not give Sailormen proper access to pay the assumed liabilities, Sailormen had to pay landlords, employees, and vendors directly.

The franchisee covered rent on restaurants it was trying to get rid of. Sailormen stopped covering rent for the locations in April 2024 and then filed a breach of contract lawsuit against Tar Heels Spice in August 2024.

The legal battle stalled after McManus declared bankruptcy.

Lawsuits Piled Up Fast

The failed sale was just the beginning.

Sailormen faced a number of other lawsuits from vendors, such as one by an IT services company accusing the franchisee of falling behind on payments as far back as 2022. Landlords sued for unpaid rent.

The debtor’s 10 largest unsecured creditors include food suppliers like Cheney Brothers Inc., owed over $623,000, and various landlords, equipment suppliers, and service providers.

The Bank Wanted Management Out

The company holds a significant unpaid principal loan balance of over $112 million, as well as over $17 million in accrued interest and fees.

BMO Bank was done waiting. On December 5, 2025, BMO Bank filed a complaint seeking a federal receiver that would ultimately displace management.

That threat forced Sailormen to act. Filing for bankruptcy was the only way to keep control of the company while trying to restructure.

Popeyes Had a Terrible 2025

Sailormen’s troubles came at the worst possible time for the brand.

The chain’s same-store sales dipped 2 percent in the third quarter. That’s after decreasing 1.4 percent in the second quarter and 4 percent in the first quarter. That was the fourth decline in five quarters.

Restaurant Brands International CEO Josh Kobza told investor analysts during the Q3 2025 earnings call that the company is “not satisfied with our performance.”

The Chicken Sandwich Boom Faded

Popeyes was unstoppable in 2019.

The company released its chicken sandwich on August 12, 2019, and just two weeks after its launch, Popeyes sold out. By the end of 2019, Popeyes had seen a 38 percent increase in sales, with the surge largely attributed to its new chicken sandwich.

But that momentum did not last. The chain saw same-store sales below 1.5% in nine consecutive quarters after Q4 2020, with six of seven quarters actually posting negative numbers during one stretch.

New Leaders Are Taking Over

Popeyes is trying to turn things around with fresh leadership.

Restaurant Brands International named Peter Perdue as brand president in November 2025. On Wednesday, January 14, the chain named Matt Rubin its new chief marketing officer as part of a reset of the company’s senior leadership team.

Perdue said the fundamentals are all in place for the brand to recover and that it needs more consistent focus, not reinvention.

Most Restaurants Will Stay Open

Despite the bankruptcy, Popeyes says most Sailormen locations will keep serving chicken.

Perdue said in a note that Sailormen has been a successful, growth-oriented franchise organization for many years and that a large majority of their restaurants are very profitable.

Perdue said a large majority of the restaurants operated by Sailormen will remain open and that corporate is supporting them in every way through this process.

Sailormen Started With 11 Stores

The company has come a long way from its humble beginnings.

Sailormen Inc. was founded in 1984 for the purpose of owning and operating Popeyes restaurants. In July 1987, the company was acquired by businessmen Bob Berg and Steve Wemple, and at this time operated 11 Popeyes stores in the Miami area.

The operator currently runs 136 locations across Florida and Georgia, employing approximately 3,300 workers.

More Bankruptcies Are Coming

Sailormen is not alone.

More than 20 restaurant chains or large-scale franchisees sought court-ordered debt protection in 2025. Several concepts have filed for bankruptcy already, less than a month into 2026, including Pieology Pizza, Taste of Belgium, Ray Ray’s Hog Pit, and Compass Coffee.

The economy was particularly tough on smaller companies, with small Subchapter V bankruptcy filings soaring 17% in August.

The wave is far from over.

This article was created with AI assistance and human editing.

Read more from this brand:

• Arby’s is Latest Casualty in USA’s Fast Food Industry Crisis
• After $23M Tariff Hit, Roomba Maker Surrenders to Chinese Buyout
• US Bankruptcies Hit 15-Year High as Tariffs Crush American Businesses