A significant franchisee of the well-known chicken chain, Popeyes, has filed for bankruptcy, casting a shadow over the future of numerous restaurants tied to the franchise. The filing comes as Sailormen Inc., which operates 130 of the 2,700 Popeyes locations in the U.S., seeks relief from an estimated $130 million in debt.
In its bankruptcy documents, the company cited the adverse impacts of the COVID-19 pandemic and inflation as major contributors to its financial struggles. Additionally, Sailormen has faced difficulties meeting rent obligations and has been involved in ongoing lawsuits, including a dispute regarding unpaid debts to an IT provider stemming from 2022.
This bankruptcy comes less than two years after Sailormen attempted to divest 16 of its locations, a deal that ultimately fell through. Despite these challenges, Popeyes US president Peter Perdue expressed optimism regarding the future of the affected restaurants. “We are supporting them in every way we can through this process and believe in them as brand and operational leaders in our system,” he commented.
In a move to bolster its leadership during this turbulent period, Popeyes has appointed Matt Rubin as the new chief marketing officer. Rubin, who previously worked at Restaurant Brands International, the parent company of chains like Burger King and Tim Hortons, is anticipated to play a crucial role in driving the chain’s growth in the coming years.
As the situation unfolds, there remains hope that many of the Sailormen-operated locations will continue to thrive with the necessary support and strategic guidance from Popeyes corporate leadership.