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Popeyes Franchisee Sailormen Closes 20 Stores as Bankruptcy Sale Process Begins

The Miami-based operator is pursuing a Section 363 auction following lease-rejection moves for shuttered locations.

Overview

  • Sailormen filed sale procedures on March 13 seeking a Section 363 auction, with a stalking-horse bid contemplated and its secured lender permitted to credit-bid.
  • A March 10 court motion to reject leases for three Georgia sites followed January closures of 17 restaurants, bringing case-linked shutdowns to about 20.
  • Court papers cite roughly $130 million in liabilities and attribute the strain to inflation, higher interest costs, limited qualified labor and lingering pandemic effects.
  • After the closures, Sailormen’s portfolio stands at about 116 restaurants, and Popeyes leadership says a large majority of those locations are expected to keep operating.
  • Prior efforts to sell assets collapsed in 2023, and the company is removing equipment from closed stores for reallocation or sale.