Bankrupt Popeyes franchisee is selling most of its restaurants

Popeyes franchisee Sailormen Inc. has found buyers for 97 of its restaurants across Florida, according to a bankruptcy filing in the Southern District of Florida. The franchisee filed for bankruptcy in January, impacting a total of 136 locations across Florida and Georgia.

Fifty of those restaurants — in Tampa, Tallahassee, Pensacola, and Jacksonville — will be acquired by Pulse Restaurant Group for $2.69 million. Pulse was established by Sailormen CEO David Damato.

Meanwhile, 23 Orlando-area restaurants will be sold to RFI Ventures LLC for $2.5 million, 16 Miami-area stores will go to Popeyes corporate for $9.6 million, five Savannah, Ga., locations will go to SBH Foods PLK LLC for $650,000, and three West Palm Beach, Fla.-area restaurants will go to 61 Biscuits LLC for $1.11 million, according to a court filing.

"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. We're proud of the strong franchisees stepping up here, and this outcome reflects the strength of the Popeyes brand throughout Florida and Georgia," a Popeyes spokesperson shared in an email to Nation's Restaurant News.

Fifty-two restaurants failed to attract buyers during this week’s auction process. The operator asked the court for permission to reject those leases, noting they were contributing to financial losses and could impact court-approved bankruptcy funding.

"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,” Sailormen wrote.

This week, the court approved lease rejections for 18 of those locations, including 15 in Florida and three in Georgia, meaning those restaurants are likely to close by the end of this month. The fate of the remaining Popeyes locations will be known following another imminent hearing.

Sailormen’s January bankruptcy filing cited rising operational costs due to inflation and increased borrowing expenses, higher wages, and consumer behavior changes since the pandemic that drove lower traffic.

Sailormen ended 2025 with more than $233 million in sales and a net operating loss of nearly $19 million. In its bankruptcy filing, the company estimated that it had about $130 million in debt. By mid-March, 20 of the franchisees’ restaurants had closed.

The company was founded in 1984 and previously operated restaurants across five states before consolidating its footprint in Florida and Georgia. Its bankruptcy and subsequent closures follow a tough few quarters for the chain, including a 6.5% decline in same-store sales in Q1, marking its biggest drop in nearly two decades.