Georgia and Florida lose 39 restaurants as bankrupt franchisee winds down operations

Why dozens of Popeyes locations shut down

A major fast-food shake-up has reshaped Popeyes’ operations across Florida and Georgia. Sailormen Inc., one of the chain’s largest franchise operators, completed a sweeping bankruptcy-driven restructuring after facing serious financial challenges.

From Chapter 11 proceedings to restaurant sales and permanent closures, the process changed ownership across much of Sailormen’s former portfolio. Here’s what happened, why it matters, and how the changes affected diners across both states.

Bankruptcy followed months of financial pressure

Sailormen Inc. entered Chapter 11 bankruptcy protection after reporting significant financial challenges across its restaurant portfolio. The company cited inflation, higher labor expenses, increased borrowing costs, and changing consumer spending as major factors affecting profitability.

Court filings also showed the franchisee carried roughly $130 million in debt while attempting to restructure its operations. Instead of shutting every restaurant immediately, the bankruptcy process allowed many locations to be sold before the remaining stores began winding down.

Most restaurants found new franchise owners

The bankruptcy process did not result in every restaurant shutting down across the two states. Court-approved transactions transferred 97 Popeyes locations to several buyers, allowing most of Sailormen’s former restaurants to continue operating under new ownership.

Those sales reduced the overall number of closures and helped preserve service in many communities. The remaining 39 restaurants did not secure buyers and closed as Sailormen completed the sale and wind-down process.

Multiple buyers preserved most locations

The bankruptcy court approved separate sales that transferred most Sailormen restaurants to several buyers. Pulse Restaurant Group purchased 50 locations, Popeyes corporate acquired 16 Miami-area restaurants, and 61 Biscuits bought three West Palm Beach-area locations.

After RFI Ventures failed to complete its purchase of 23 Orlando-area restaurants, SBH Foods PLK LLC stepped in as the replacement buyer. The same operator had already agreed to acquire five Savannah locations, helping keep 97 of Sailormen’s 136 restaurants operating under new ownership while the remaining 39 closed.

Rising costs weakened the business

Court filings identified several economic pressures that steadily reduced the franchisee’s financial performance before bankruptcy. Inflation increased food and operating expenses, while higher interest rates raised borrowing costs and labor shortages made restaurant staffing more difficult.

The company also reported softer customer traffic as consumer spending patterns changed after the pandemic. Together, those challenges contributed to operating losses despite the franchisee generating more than $233 million in annual sales.

A failed sale added financial strain

Court filings show Sailormen’s financial challenges increased after a planned 2023 sale of 16 Georgia restaurants failed. The unsuccessful transaction left the company responsible for lease guarantees, adding to mounting financial obligations during an already difficult operating environment.

The company also faced vendor payment issues while managing rising operating expenses and substantial secured debt. Those combined pressures ultimately led Sailormen to seek Chapter 11 protection and pursue court-supervised sales of its restaurant portfolio.

Popeyes brand continues beyond the bankruptcy

The bankruptcy involves Sailormen Inc., not the Popeyes restaurant chain as a whole. Popeyes continues operating thousands of restaurants worldwide through other franchisees, and the company has expressed confidence in the buyers taking over many former Sailormen locations.

Corporate representatives said the ownership changes reflect continued confidence in the brand throughout Florida and Georgia. Customers should expect many transferred restaurants to continue serving under the Popeyes name after ownership changes.

Restaurant ownership changes are complete

The 39 restaurants that did not secure buyers closed as Sailormen completed the sale of its restaurant portfolio. The other 97 locations were sold to new operators, allowing most of the former Sailormen restaurants to continue under new ownership.

The new operators are responsible for running the acquired restaurants, while Popeyes has expressed confidence that the buyers will continue serving their local communities.

Interesting fact: Popeyes did not originally start with the Popeyes name.

Florida accounts for most of the closures

Florida accounted for the largest share of the restaurant closures in Sailormen’s restructuring. Thirty-one of the 39 locations that closed were in Florida, while the remaining eight were in Georgia.

The concentration reflects Sailormen’s extensive presence in Florida before entering bankruptcy protection. Many other Florida restaurants continue operating after being acquired by new owners through the court-supervised sale process.

Interesting fact: Popeyes introduced its famous buttermilk biscuits in 1983.

Georgia saw eight final closures

Georgia was part of Sailormen’s bankruptcy restructuring alongside Florida. Earlier in the case, three additional Georgia restaurants had shuttered by March, and Sailormen sought court approval to reject leases tied to those properties. Five Savannah-area locations were later sold to SBH Foods PLK LLC through the court-supervised sales process.

Eight Georgia restaurants were among the final 39 locations that closed after buyers were not secured. Other Georgia restaurants from Sailormen’s portfolio were sold to new operators, including the five Savannah locations acquired by SBH Foods PLK LLC.

Popeyes continues expanding nationwide

Although Sailormen’s bankruptcy is significant, it does not reflect the financial condition of Popeyes as a national brand. Popeyes continues operating nearly 5,500 restaurants worldwide, including roughly 3,200 locations across the United States through numerous independent franchisees.

The company has continued emphasizing value meals, menu quality, and new restaurant development in many markets. Corporate leadership has also expressed confidence in the franchisees acquiring former Sailormen restaurants.

Chapter 11 allowed restaurants to be sold

Chapter 11 bankruptcy is designed to help businesses reorganize while continuing operations during the court process. Instead of immediately liquidating every asset, companies can sell profitable locations, renegotiate obligations, and reduce debt under judicial supervision.

Sailormen used that process to market its restaurant portfolio before closing locations that did not attract buyers. The restructuring allowed 97 Popeyes restaurants to continue operating under new ownership while 39 remaining locations were designated for closure.

The internet is also talking about how customers lose another familiar pizza name as the Twin Cities chain closes four locations and heads to bankruptcy court.

Restructuring ends Sailormen’s Popeyes run

The closure of 39 restaurants concluded a major Popeyes franchise restructuring across Florida and Georgia. While dozens of locations closed permanently, most of Sailormen’s former restaurants continued operating under new owners after court-approved sales.

The outcome shows how Chapter 11 can preserve viable portions of a business while other locations are closed or liquidated. Customers in many affected markets still have access to Popeyes through restaurants purchased by new operators.

In other news, FAT Brands files for bankruptcy as debt and financial pressure mount.

Did this development surprise you? Like this slideshow and share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

Read More From This Brand:

• Agricultural impacts emerge after Del Monte bankruptcy filing
• The doctor whose ‘failed experiment’ inspired Montessori schools
• The Monterey biologist who connected tidal pools to American literature and myth