A Popeyes fast-food chain franchise sought Chapter 11 bankruptcy protection on Jan. 15 due to overwhelming debt, unsuccessful sales initiatives, and escalating legal challenges that pushed its finances into crisis.
Despite generating more than $223 million in sales in 2025, the franchisee reported a net operating loss of more than $18 million, according to David Baker, chief restructuring officer and managing partner at Aurora Management Partners. According to court filings, the franchisee struggled under a heavy debt load of approximately $130 million. As of Jan. 12, the company held more than $232 million in assets against more than $342 million in liabilities.
Court filings reveal a series of setbacks stretching back more than a year. In 2023, an attempted sale of 16 under-performing Popeyes locations in Georgia fell through, leaving Sailormen responsible for lease guarantees. The company also defaulted on rent to several landlords and faced lawsuits from vendors seeking payment for unpaid bills.
In December 2025, Sailormen’s largest lender, BMO Bank N.A., filed a lawsuit to appoint a federal receiver who would replace the company’s management and assume control of its assets. Instead of relinquishing control, Sailormen chose to file for Chapter 11 bankruptcy, maintaining that creditors and stakeholders would benefit more if the company remained as a debtor-in-possession.
According to court records, Sailormen Inc. was founded in July 1987 and initially operated 11 Popeyes locations in the Miami area. The company grew to 15 stores by the end of 1995 and then expanded beyond Florida by acquiring five underperforming restaurants in Birmingham, Alabama.
From 1996 through 2000, the company completed eight additional acquisitions, some as large as 72 units, establishing operations in seven states: Florida, Alabama, Georgia, Illinois, Louisiana, Missouri, and Mississippi.
Between 2012 and 2018, Sailormen sold its operations in Alabama, Illinois, Louisiana, Missouri, and Mississippi to focus on new development in Florida and Georgia. Today, the company operates 136 Popeyes restaurants across Florida and Georgia and is owned by Interfoods of America, Inc., a Nevada corporation.
At the time of the bankruptcy filing, Sailormen stated that it has 3,306 employees: 34 salaried and 3,272 hourly workers, of which 3,272 are restaurant-level staff and 29 are area or operations directors. Of all the employees, 746 are full-time employees scheduled for at least 35 hours per week.
According to the Chapter 11 filing, Sailormen aims to stabilize operations, pursue a sale process, renegotiate leases, and restructure its debts while continuing to serve customers.
Perdue added that “a large majority of their restaurants are very profitable, in line with our system average (and some above average),” and that most locations operated by Sailormen are expected to stay open during the restructuring.