Overview
- On March 13, Sailormen asked the bankruptcy court to approve sale procedures for a Section 363 auction, including a stalking-horse bid and credit-bid rights for its secured lender.
- The Miami-based operator filed for Chapter 11 protection on January 15 in the U.S. Bankruptcy Court for the Southern District of Florida.
- Court filings show roughly 20 restaurants have closed, with a March 10 motion adding three Georgia sites and seeking rejection of their leases.
- The company is moving to reject unexpired leases tied to shuttered stores and is removing equipment for redeployment or sale, projecting more than $1 million in annual SG&A savings.
- Filings cite inflation, softer traffic for this operator, labor challenges, higher interest rates, legal disputes and about $130 million in debt, while more than 100 remaining locations continue operating with their future uncertain.