
Popeyes locations close as franchisee files for bankruptcy
Popeyes locations close as franchisee files for bankruptcy
- Sailormen Inc. filed for Chapter 11 bankruptcy in January 2023.
- Over a dozen Popeyes locations have closed, including three prior to the bankruptcy filing.
- The financial difficulties stemmed from inflation, the COVID-19 pandemic, and labor shortages.
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In the United States, particularly in Georgia, a significant development occurred following the Chapter 11 bankruptcy filing by Sailormen Inc., a major franchisee of Popeyes Louisiana Kitchen. The company, which operates 136 locations across Georgia and Florida, reported its bankruptcy in January 2023. In the aftermath of this filing, more than a dozen of its restaurants closed, impacting the availability of the popular chicken chain in the region. Notably, three locations had already shut down before the bankruptcy announcement, although these closures were only disclosed in early March 2023. The court documents related to Sailormen Inc.'s bankruptcy proceedings indicated that rejecting the leases for these closed locations would alleviate operating costs, with estimated annual savings exceeding $1 million. Factors contributing to the company's financial struggles were cited as inflation, the COVID-19 pandemic, and an increasingly limited pool of qualified labor in the fast-food industry. Sailormen Inc., founded in 1984, once boasted a broader operational footprint across several states but saw significant downsizing between 2012 and 2018. Despite the challenges, reports suggested that a large majority of Sailormen Inc.'s remaining restaurants were performing profitably, aligning with the average for the fast-food industry, with some even exceeding it. In January 2023, Peter Perdue, president of Popeyes in the U.S. and Canada, expressed optimism regarding the stability of most of Sailormen's operations amid the bankruptcy crisis. The situation at Sailormen Inc. was commonplace in the fast-food sector, which has recently experienced a wave of closures, with other chains also halting operations in various locations. Noteworthy closures included Salad and Go and Noodles & Company as they attempted to navigate their economic difficulties.