Another wave of Popeyes Louisiana Kitchen restaurants are likely to close soon, the latest dramatic development in ongoing bankruptcy proceedings involving a prominent franchisee for the fast-food chicken chain.
The franchisee, Sailormen Inc. of Miami, has been trying to sell off its assets, which had included about 130 Popeyes locations at the time of its initial Chapter 11 petition in January.
But in an auction last week, as many as 52 of those locations failed to find a bidder, a shocking new court document reveals. The grim outcome left Sailormen to determine that “rejecting” the store leases—bankruptcy speak for terminating its agreements with landlords—is likely its next course of action.
“Those stores now constitute a burden on the Debtor’s estate, and, as of July 1, 2026, the Debtor will no longer have the authority to use cash collateral to operate those stores,” lawyers for Sailormen said in a bankruptcy filing.
But not so fast. After a hearing on June 23, a judge allowed only 18 of those lease rejections to go forward, with Sailormen indicating it will close and vacate the approved restaurants by the end of the month. The impacted Popeyes stores are located in Florida and Georgia.
A second hearing to determine what will happen to the remaining leases is set for June 26. Court filings note that Sailormen could still remove stores from the list before the rejections become effective, presumably if a last-minute buyer is found.
It’s unclear how many jobs would be impacted by these closures. Sailormen and its legal counsel did not respond to requests for comment. A spokesperson for Popeyes declined to comment.
Which Popeyes locations are closing?
Sailormen has already closed 20 locations as part of its Chapter 11 proceedings, as Fast Company previously reported.
The franchisee had said in court documents that it suffered from inflationary pressures and soft foot traffic that never fully recovered from the COVID-19 pandemic.
After holding auctions to sell off its assets, Sailormen last week told the court that many of its stores failed to find a bidder. The initial proposed list included 52 locations, which was a surprising number, as it amounted to almost half of Sailormen’s remaining portfolio.
However, following a hearing on the matter, the U.S. Bankruptcy Court for the Southern District of Florida has so far only granted permission to reject the leases on 18 locations. The fate of the remaining stores will be determined at a hearing on Friday.
The list of 18 impacted restaurants are as follows:
Florida
- 524 Atlantic Blvd., Neptune Beach, FL
- 7507 Atlantic Blvd., Jacksonville, FL
- 814 E. Cervantes Street, Pensacola, FL
- 1050 S. Walnut St., Starke, FL
- 18403 S. Dixie Hwy., Cutler Bay, FL
- 2161 S. Byron Butler Parkway, Perry, FL
- 6401 N 9th Ave, Pensacola, FL
- 3716 Gulf Breeze Pkwy, Gulf Breeze, FL
- 450047 SR 200, Callahan, FL
- 5695 NW 23rd Street, Gainsville, FL
- 15655 NW US Highway 441, Alachua, FL
- 801 W Base ST, Madison, FL
- 6329 Dr. ML King Jr Street N, St Petersburg, FL
- 11840 SR 64 E, Bradenton, FL
- 3390 First Street, Bradenton, FL
Georgia
- 397 US 84 E, Cairo, GA
- 615 East Oglethorpe Ave., Hinesville, GA
- 4933 New Jesup Hwy, Brunswick, GA
What about the franchisee’s other locations?
In an auction last week, several bidders stepped in to purchase Sailormen’s restaurants, presumably those that are seen as having a better chance for long-term success.
Perhaps most notably, Popeyes itself has agreed to buy 16 locations, most in the Miami area, where the fast food chain is headquartered, according to court documents.
It’s not unusual for restaurant chains to scoop up locations from struggling franchisees. Hardee’s, for instance, recently bought and reopened dozens of locations after a legal battle had forced the stores to close.
In another interesting twist, a limited liability company called Pulse Restaurant Group has purchased 50 of Sailormen’s locations. David Damato, CEO of Sailormen, is also listed in court documents as CEO of Pulse Restaurant Group. Fast Company reached out to Damato for comment.
The Popeyes brand is owned by Restaurant Brands International (RBI), which also owns Tim Hortons, Burger King, and Firehouse Subs. At the end of last year, RBI said it had just under 3,600 Popeyes locations in the United States and Canada.
This story is developing and may be updated…
