The popularity of the fried chicken dining sector is not enough to prevent restaurants from filing for bankruptcy protection and going out of business if negative economic factors prevail.
The rising cost of doing business and unsustainable debt are often cited as the top reasons for restaurants' financial distress, forcing them to close businesses.
Popeyes Louisiana Kitchen franchisee Sailormen Inc., which operated 136 fried chicken locations when it filed for bankruptcy in January 2026, has rejected 22 leases of locations that it could not sell and will permanently close them.
Sailormen will divest all of its Popeyes businesses after selling 97 of its restaurants to five buyers and closing the remaining 39 locations that it could not sell.
The debtor had won approval in the U.S. Bankruptcy Court for the Southern District of Florida in Miami to reject 18 restaurant leases, consisting of 15 locations in Florida and 3 in Georgia, on June 24.
The rising cost of doing business and unsustainable debt are often cited as the top reasons for restaurants' financial distress, forcing them to close businesses.
Popeyes Louisiana Kitchen franchisee Sailormen Inc., which operated 136 fried chicken locations when it filed for bankruptcy in January 2026, has rejected 22 leases of locations that it could not sell and will permanently close them.
Sailormen will divest all of its Popeyes businesses after selling 97 of its restaurants to five buyers and closing the remaining 39 locations that it could not sell.
The debtor had won approval in the U.S. Bankruptcy Court for the Southern District of Florida in Miami to reject 18 restaurant leases, consisting of 15 locations in Florida and 3 in Georgia, on June 24.
28 days ago
