Popeyes franchisee Sailormen files Chapter 11, threatens thousands of jobs

Sailormen Inc., a major Popeyes franchisee that operates 136 restaurants across Florida and Georgia, filed for Chapter 11 bankruptcy protection on Jan. 15, 2026. The company listed more than $232 million in assets and over $342 million in liabilities, and disclosed a net operating loss of more than $18 million for 2025 despite roughly $223 million in sales for the year.

The filing traces the slide to a liquidity squeeze that intensified after a planned sale of 16 restaurants fell through. Sailormen subsequently fell behind on rent and loan obligations. Under Chapter 11 the company said it intends to remain open while it pursues either a sale of assets or a court-supervised restructuring, arguing that reorganization is preferable to allowing a lender-appointed receiver to take control.

For the thousands of frontline crew members, shift leaders, general managers and back-of-house staff employed by the chain, Chapter 11 carries mixed implications. The process generally allows businesses to keep operating and paying wages while they work through claims from landlords and creditors, which can preserve jobs in the short term. At the same time, reorganizations often include store closures, workforce reductions, changes to hours and altered vendor or benefit arrangements depending on the final plan or any buyer’s priorities.

The case spotlights pressures that have squeezed many franchise operators in recent years. Operators face inflationary menu costs, higher borrowing rates that make refinancing more expensive, shifting consumer preferences that can depress traffic, and a tight pool of qualified hourly labor that drives up recruitment and wage costs. Those forces can compress margins quickly for operators running dozens of locations, where a handful of underperforming stores can flip a profitable year into a loss.

The franchise model also complicates outcomes. Real estate leases, local landlord relationships and lender covenants sit with the franchisee, not the brand. That means decisions about closures, lease restructurings and which stores are sold will play out in bankruptcy court and in negotiations with landlords and secured creditors. For employees, that can mean uncertainty over where and when closures or sales might occur.

Workers and managers at Sailormen-owned restaurants will be watching for court filings and direct communications from their employer about payroll, schedules and any potential store-level actions. For restaurant employees across the region, the case serves as a reminder that macroeconomic pressures can translate quickly into job insecurity at the store level.

What comes next will depend on whether Sailormen can line up a buyer or negotiate a reorganization plan that satisfies creditors while keeping enough locations operating to sustain payroll. The outcome will shape not only the immediate fates of thousands of workers but also how other franchise operators weigh expansion, debt and staffing decisions in the months ahead.