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Popeyes Franchisee Files Bankruptcy, Closing More Stores
17 Mar
Summary
- A major Popeyes franchisee, Sailormen Inc., is closing additional locations.
- The franchisee cited reduced foot traffic and high inflation for bankruptcy.
- Popeyes stated the franchisee's issues do not reflect brand-wide challenges.
Several more Popeyes restaurants operated by the franchisee Sailormen Inc. are slated for closure. Court documents from March 10 indicate plans to shut down three locations in Georgia. These closures are in addition to 17 other Popeyes restaurants that Sailormen Inc. announced it would close in January.
Sailormen Inc., which manages over 130 Popeyes locations, filed for Chapter 11 bankruptcy protection in January. The company cited a combination of reduced foot traffic and high inflation as primary reasons for the filing. A failed deal to sell 16 restaurants in 2024 also contributed to its financial liabilities.
Despite these closures, Popeyes maintains that the situation with Sailormen Inc. does not represent systemic issues for the fast-food chain. The brand's president stated that a large majority of their restaurants continue to be very profitable, performing in line with or even above the system average.
