A franchisee who owns 136 Popeyes Louisiana Kitchen restaurants has filed for Chapter 11 bankruptcy. Court documents show the franchisee, Sailormen Inc., filed for protection Thursday in U.S. Bankruptcy Court in Miami.
As part of the filing, David Baker, chief restructuring officer and managing partner at Aurora Management Partners, claimed Sailormen suffered a net operating loss of over $18 million in 2025 alone, despite reporting over $223 million in sales. Aurora has been appointed as Sailormen’s chief restructuring officer.
Sailormen currently operates 136 restaurants in Florida and Georgia and employs more than 3,300 people. The franchisee reported over $232 million in assets, but more than $342 million in liabilities.
Last month, Sailormen’s largest lender, BMO Bank, filed a complaint in New York that called for a federal receiver to control Sailormen’s assets. However, the franchisee elected to file for Chapter 11 rather than allow that to happen.
In court filings, Baker wrote that Sailormen believes “the Debtor, creditors and estate will fare far better in a chapter 11 case with the Debtor remaining a debtor-in-possession acting as a fiduciary for the benefits of all creditors and parties in interest, and not just for the benefit of the Lenders.”
Sailormen’s financial struggles have been attributed to the fallout of the COVID-19 pandemic, increased rates for borrowing money, changes in consumer habits and more. Previously, the company attempted to sell 16 restaurants to help alleviate the financial problems, but the sale fell through.
As of now, it does not appear that any of Sailormen’s Popeyes locations are closing as a result of the bankruptcy.
