UPDATE as of June 26, 2026: A representative for Popeyes said in an emailed statement that 97 of the 136 stores included in the filing have been purchased by other local franchisees and owners.
“The auction process has concluded, and 97 of the original 136 restaurants will now be in the hands of great, local operators who are well suited to reinvest in their businesses and deliver excellent service for guests in their communities,” the representative said. “We're proud of the strong franchisees stepping up here, and this outcome reflects the strength of the Popeyes brand throughout Florida and Georgia.”
The original story is below.
The bankruptcy of one of Popeyes' biggest franchisees has taken another dramatic turn. After failing to find buyers for dozens of restaurants during a recent auction, Miami-based Sailormen Inc. is now preparing to shut down even more locations across Florida and Georgia, with 18 closures already approved by a bankruptcy judge and the fate of dozens more expected to be decided in court.
The latest court filings, which were obtained by Fast Company, show just how quickly Sailormen's restructuring has deteriorated. The company sought to unload much of its remaining portfolio through a recent bankruptcy auction, but as many as 52 restaurants failed to attract buyers. That left the franchisee with little choice but to begin rejecting leases.
In court, Sailormen's attorneys wrote, "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."
A judge has so far authorized lease rejections for 18 restaurants—15 in Florida and three in Georgia—with the locations expected to close and be vacated by the end of the month.
Another hearing is scheduled to determine the fate of the remaining stores included in Sailormen's original request. The company could still remove some restaurants from the list if buyers emerge before the court signs off on additional closures.
The new developments mark a significant escalation from where the case began. When Sailormen entered Chapter 11 protection earlier this year, it operated roughly 130 Popeyes restaurants across Florida and Georgia. The franchisee blamed inflation, declining customer traffic, lingering effects from the COVID-19 pandemic, and roughly $130 million in debt for its financial collapse.
It had already closed about 20 restaurants before the latest wave of proceedings began, and earlier attempts to sell portions of the business failed to generate enough interest to keep many locations operating.
Not every restaurant is disappearing, however. Court records show Popeyes itself has agreed to acquire 16 locations, primarily in the Miami area, while Pulse Restaurant Group purchased another 50 restaurants.
An unusual wrinkle in the case is that Pulse Restaurant Group is led by Sailormen CEO David Damato, according to bankruptcy filings, potentially keeping a sizable portion of the franchise network under familiar leadership even as the restructuring continues.
The outcome of the June 26 hearing could determine whether the bankruptcy remains a regional restructuring or becomes one of the largest franchise collapses in Popeyes' history.
