Is Popeyes Going Bankrupt? The 2026 Sailormen Franchisee Bankruptcy Explained
🗓️ 2026 Update (October 11, 2026): Popeyes is not bankrupt. The 2026 bankruptcy involved Sailormen Inc., a Miami-based franchisee that ran 136 Popeyes restaurants in Florida and Georgia. It filed for Chapter 11 on January 15, 2026, closed at least 20 restaurants by March, and in June a judge approved the sale of 97 restaurants to five buyers, including Popeyes itself. Restaurants outside this one franchisee were not affected.
Headlines in March 2026 about Popeyes restaurants closing after a bankruptcy left many people asking whether the whole chain was in trouble. It was not. The bankruptcy belonged to one large franchise operator, Sailormen Inc. This guide explains who Sailormen is, why it filed, which restaurants closed, who bought the remaining stores and what it means if you eat at Popeyes.
Is Popeyes Going Out of Business?
No. Popeyes Louisiana Kitchen, owned by Restaurant Brands International, has thousands of restaurants worldwide and has not filed for bankruptcy. Most Popeyes restaurants are run by independent franchisees, and in 2026 one of the largest of them, Sailormen, filed for Chapter 11 protection. That filing affected only Sailormen’s restaurants in Florida and Georgia.
Popeyes Franchisee Bankruptcy at a Glance
| Detail | What We Know |
|---|---|
| Company | Sailormen Inc., based in Miami |
| Restaurants at filing | 136 Popeyes locations in Florida and Georgia |
| Filing | Chapter 11, January 15, 2026, U.S. Bankruptcy Court for the Southern District of Florida |
| Secured debt | About $130 million |
| Closures by mid-March | At least 20 restaurants |
| Restaurants sold | 97, to five buyers, for about $16.5 million |
| Sale approved | June 23, 2026 |
Timeline: What Happened in 2026
| Date | Event |
|---|---|
| January 15, 2026 | Sailormen files for Chapter 11 bankruptcy in Miami |
| January 2026 | 17 Popeyes restaurants in Florida and Georgia close |
| March 10, 2026 | Motion to reject the leases of 3 more Georgia stores (Brunswick, Baxley and Homerville), bringing closures to at least 20 |
| March 13, 2026 | Sailormen asks the court to approve an auction of its restaurants; it was running 119 stores at that point |
| June 15, 2026 | Auction held in Miami |
| June 23, 2026 | Judge approves the sale of 97 restaurants to five buyers |
| Late June 2026 | Court approves lease rejections for 18 unsold stores (15 in Florida, 3 in Georgia), which were expected to close |
Why Did Sailormen File for Bankruptcy?
In its filing, Sailormen pointed to several pressures at once: higher food and labor costs, inflation, higher borrowing costs, fewer customer visits since the pandemic and about $130 million in secured debt. Reports also noted that it had struggled to pay some bills since 2022, that an earlier sale of 16 Georgia restaurants fell apart, and that a 2025 attempt to sell 32 Jacksonville-area stores did not lead to a deal.
In an internal memo in January, Popeyes president Peter Perdue said a large majority of Sailormen’s restaurants would stay open and that the franchisee carried more debt than is typical in the Popeyes system.
Who Bought the Sailormen Popeyes Restaurants?
| Buyer | Restaurants | Area | Price |
|---|---|---|---|
| Pulse Restaurant Group (led by Sailormen CEO David Damato) | 50 | Tampa, Tallahassee, Pensacola, Jacksonville | About $2.7 million |
| RFI Ventures | 23 | Orlando area | $2.5 million |
| Popeyes (franchisor) | 16 | Miami area | $9.6 million |
| SBH Foods | 5 | Savannah, Georgia | $650,000 |
| 61 Biscuits | 3 | West Palm Beach area | About $1.1 million |
What It Means for Popeyes Customers
✅ MOST STORES STAY OPEN
New owners, same Popeyes
The 97 restaurants that were sold are expected to keep operating as Popeyes under new owners. The menu, app and Rewards program work the same way.
⚠️ SOME CLOSURES
Check before you go
Roughly 20 stores closed early in the case, and about 20 more that found no buyer were expected to close. In Florida or Georgia, check the Popeyes app’s store locator first.
If you find your usual store has closed, the Popeyes app shows the nearest open location and its hours. See our Popeyes Hours guide and Delivery guide.
How Is Popeyes Doing Overall in 2026?
The chain has had a tough stretch. U.S. same-store sales fell 2.9% in 2025, then 6.5% in the first quarter of 2026 and 5.2% in the second quarter, its sixth straight quarterly decline. Under president Peter Perdue, Popeyes has responded by focusing on operations, its core menu and everyday value, including the $5 Faves menu, the $6 Big Box and the $20 Family Meal, plus upgraded tenders and a new ad campaign in August 2026.
Frequently Asked Questions
Did Popeyes file for bankruptcy in 2026?
No. A franchisee called Sailormen Inc. filed for Chapter 11. Popeyes as a company did not file for bankruptcy.
How many Popeyes closed because of the bankruptcy?
At least 20 had closed by mid-March 2026. After the June auction, about 22 restaurants were left without a buyer, and the court approved lease rejections for 18 of them, meaning those were expected to close.
Which states were affected?
Only Florida and Georgia, where Sailormen operated its restaurants.
Who is Sailormen?
A Miami-based company that had been a Popeyes franchisee since the late 1980s and was one of its largest operators, with 136 restaurants when it filed.
Will my Popeyes Rewards points still work?
Rewards are run by Popeyes, not by individual franchisees, so your points stay in your account and can be used at any participating restaurant. See our Rewards guide.
More Popeyes guides: Full Popeyes Menu with Prices · Hours · Coupons & Deals · $5 Faves
Sources: Nation’s Restaurant News (closures and Popeyes memo, March 2026), Nation’s Restaurant News (buyers and lease rejections, June 2026), QSR Magazine (approved sale), Law360 (June 23 approval), Stacker (filing details), The National News Desk (earlier failed sales), Nation’s Restaurant News (Q2 2026 sales). MenusHouse is an independent website and is not affiliated with Popeyes Louisiana Kitchen. This article is for general information and is not financial or legal advice.
