2 min read- One of Popeyes’ largest franchise operators has announced 20 restaurant closures following its Chapter 11 bankruptcy filing earlier this year.
- The affected locations are in Florida and Georgia.
- The franchisee still operates roughly 100 additional Popeyes restaurants, though no further closures have been announced yet.
You might “love that chicken from Popeyes ♪,” but loving it and buying it are two different things. Popeyes Louisiana Kitchen is the latest chain feeling the effects of declining customer traffic, and that downturn has now pushed one of its largest franchisees into bankruptcy.
The operator, Sailormen Inc., previously oversaw more than 130 Popeyes locations across the South and filed for Chapter 11 bankruptcy protection in January. Since then, the company has shut down 20 locations in Florida and Georgia. It’s still unclear whether more closures are on the way as bankruptcy proceedings continue.
According to the filing, Sailormen Inc. cited roughly of $130 million in debt, along with declining customer traffic, inflation, and economic pressure. The operator has also reportedly dealt with the fallout from prior litigation, including lawsuits from multiple vendors over unpaid bills.
Unfortunately, Popeyes isn’t alone here. Plenty of chain restaurants are trying to navigate rising food and labor costs, higher interest rates, and a consumer who isn’t dining out quite as freely as before. This year alone, major names like Starbucks, Wendy’s, Denny’s, and Outback Steakhouse have all closed multiple locations.
For now, Sailormen’s remaining restaurants are still operating. But with 20 already gone, it’s clear this bankruptcy is more than just paperwork.