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Sailormen Inc., a Miami-based Popeyes franchisee with more than 130 restaurants, has filed for Chapter 11 bankruptcy protection in the Southern District of Florida.
In its filings, the company estimated its liabilities at about $130 million. The company said it had “faced significant challenges” over the past year resulting in financial distress, including higher operating costs due to inflation and increased borrowing charges, rising wages and changes in consumer behavior since the pandemic caused footfall to fall.
Additionally, in late 2023, Sailormen reached an agreement with buyer Tar Heels Spice to sell 16 of its Georgia restaurants as part of a restructuring plan. However, the deal failed, further exacerbating the company’s financial pressure. Sailormen stopped paying rent at these locations in April 2024 and then filed a breach of contract lawsuit against Tar Heels Spice in August 2024.
Separately, the company’s primary lender, BMO Bank, filed a lawsuit against Sailormen in December, alleging breach of contract related to franchisee loan obligations. In the complaint, which is the catalyst for the Chapter 11 lawsuit, BMO is seeking a court-appointed receiver to take control of Sailormen and its assets. Sailormen said its stakeholders “will be better off” as a result of the filing.
As of 2025, Sailormen had sales of more than $233 million and a net operating loss of nearly $19 million.
The filing comes after a relatively weak year for the chain, which most recently reported third-quarter same-store sales of -2%. Previously, same-store sales fell 0.9% in the second quarter and -4% in the first quarter. However, Popeyes sales increased nearly 4% in 2024, while the company’s sales have increased nearly 20% since 2021.
With less than a month until 2026, several concepts have already filed for bankruptcy, illustrating that the market is fraught with challenges such as rising costs and slowing consumer adoption. Concepts including Pieology Pizza, Taste of Bulgaria, Ray Ray’s Hog Pit and Compass Coffee have applied for protection in the past six weeks.
Contact Alicia Kelso Alicia.Kelso@informa.com
Follow her on TikTok: @aliciakelso
