Popeyes franchisee Sailormen Inc. files bankruptcy over $129M debt

A Popeyes Louisiana Kitchen franchisee that operates greater than 130 places has filed for chapter to proper itself after dealing with mounting debt.

Sailormen Inc., a Miami-based franchisee that operates places in Florida and Georgia, has filed for chapter safety within the U.S. Chapter Courtroom for the Southern District of Florida, in keeping with its authorized counsel.

The corporate, represented by Cole Schotz, is attempting to renegotiate or resolve the $129 million it owes to lenders so it might emerge as a more healthy franchisee.

The corporate blamed “a number of macroeconomic elements” for disrupting the enterprise and forcing it to file for chapter safety.

“These elements embody the nationwide impression of the COVID-19 pandemic on restaurant operations, shopper alternative, excessive inflation, increased rates of interest and an more and more restricted certified workforce,” the court docket paperwork mentioned.

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A buyer orders meals at a Popeyes restaurant in Austin, Texas. (Brandon Bell/Getty Pictures)

Popeyes Louisiana Kitchen Inc. is a subsidiary of Restaurant Manufacturers Worldwide (RBI), which acquired the chain in 2017. However the majority of Popeyes places are owned and operated by franchisees.

FOX Enterprise has reached out to Schotz and Restaurant Manufacturers Worldwide for remark.

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Popeyes Louisiana Kitchen Inc. is a subsidiary of Restaurant Manufacturers Worldwide. (Roberto Machado Noa/LightRocket through Getty Pictures)

This comes amid a string of eateries submitting for chapter in recent times. In reality, chapter legal professional Daniel Gielchinsky predicted final yr {that a} rising variety of main restaurant chains is prone to proceed submitting for chapter safety within the coming years because the trade struggles to handle the heavy debt it has amassed throughout the COVID-19 pandemic.

“Eating places that exist immediately could not exist in 5 years. They are going to be off the map,” Gielchinsky instructed FOX Enterprise in February 2025. As well as, customers will see “a number of eating places with smaller footprints,” he added.

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Nearly all of Popeyes places are owned and operated by franchisees. (Jeffrey Greenberg/Common Pictures Group through Getty Pictures)

In response to Gielchinsky, founder and companion of South Florida-based DGIM Legislation, a number of elements led to their demise. Nonetheless, the COVID-19 pandemic was the catalyst because the sector noticed a major drop in site visitors.

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Operators wished to maintain their doorways open, in order that they needed to pay prices resembling hire, insurance coverage and payroll prices, even when no prospects got here. To remain afloat, eating places relied on authorities subsidies, but in addition closed down loans to finance enterprise bills. This meant that corporations constructed up debt that they needed to pay again over time plus curiosity.