Major chicken chain franchisee files for bankruptcy — what went wrong behind the scenes

A big Popeyes franchisee called Sailormen Inc has filed for bankruptcy. This puts around 130 restaurants at risk out of 2,700 Popeyes restaurants in the US. The company owes about $130 million in debt, as reported by The US Sun. Sailormen tried to sell more than a dozen restaurants to clear debt but failed. The company blamed Covid-19 pandemic and high inflation for their financial troubles.

Sailormen also had problems paying rent for its restaurants. Two years ago, Sailormen tried to sell 16 restaurants, but the deal failed. The company has been involved in lawsuits. They fell behind on payments to an IT company, in a case going back to 2022.

Popeyes support and leadership updates

Peter Perdue, Popeyes US president, said many of the Sailormen-operated restaurants will likely stay open. Perdue also said Popeyes is supporting Sailormen in every way and believes in them as brand and operational leaders, as noted by The US Sun. Popeyes announced Matt Rubin as their new chief marketing officer.


Rubin previously worked at Restaurant Brands International, the parent company of Burger King and Tim Hortons. Rubin said he looks forward to leading the company’s next phase of growth.

Bankruptcy explained for Sailormen Inc

Bankruptcy is a legal process that helps companies clear debts they cannot pay and start fresh, as stated by Investopedia. Bankruptcy allows companies to sell assets more easily to pay creditors.

Chapter 11 bankruptcy is used to restructure a business with the goal of staying open, even if most properties must be sold. Chapter 7 bankruptcy sells all assets and the company closes, as cited by The US Sun. Chapter 15 bankruptcy allows US and foreign courts to work together when a company has operations in more than one country.

FAQs

Q1. Why did Sailormen Inc file for bankruptcy?

Sailormen Inc filed for bankruptcy because it could not pay $130 million debt, partly due to Covid-19, inflation, and rent problems.

Q2. Will Sailormen-operated Popeyes restaurants close?

Many Sailormen restaurants are expected to stay open as Popeyes is supporting them during bankruptcy.