• A major Popeyes franchisee, Sailormen Inc., filed for bankruptcy.
  • The company has already closed more than a dozen locations, with more potentially at risk.
  • Despite the closures, Popeyes says most locations will stay open and the brand itself remains financially strong.

Sorry, Popeyes fans, but more of your favorite fast-food spots are closing.

In January, Sailormen Inc, a massive Popeyes restaurant franchisee, filed for bankruptcy, closing more than a dozen locations in the weeks that followed, according to reports. While that number may not seem huge, the situation becomes more concerning when you consider that Sailormen Inc manages more than 130 Popeyes locations—putting many of their futures on the line.

As part of its bankruptcy filing, the company has also filed several motions to walk away from several leases, including 17 in Miami. This comes in addition to restaurant closures in Tampa, Jacksonville, Fort Pierce, Melbourne, Leesburg, and Chiefland in Florida, as well as locations in Georgia, including Waycross and Hazlehurst. By rejecting these leases, the company explained in its filing, Sailormen Inc will be able to save more than $1 million annually in operating costs. However, that may not be enough to offset its roughly $130 million in debt.

While the company noted that several locations were simply underperforming, in additional court documents, it also cited the "national impact of the COVID-19 pandemic on restaurant operations, consumer choice, high inflation, increased borrowing rates, and an increasingly limited qualified labor force” as to why these locations may be failing.

There is one silver lining for Popeyes fans: This bankruptcy doesn't directly affect the larger brand or its parent company, Restaurant Brands International.

Restaurant Business reviewed a note written by Peter Perdue, the president of Popeyes U.S. and Canada, which clearly stated that this filing does not reflect the brand's overall profitability. He noted that Sailormen Inc simply had “more leverage than is common in our current Popeyes system.” Perdue added, “Sailormen has been a successful, growth-oriented franchise organization for many years in our system … A large majority of their restaurants are very profitable, in line with our system average (and some above average).”

Still, he acknowledged the challenges, saying, “I can confidently tell you that Sailormen’s announcement does not reflect the healthy unit economics that you are experiencing in your restaurants."

Perdue also shared that a "large majority" of Sailormen-operated locations will remain open. “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 said. He did not, however, specify which locations would be spared.

Popeyes is far from alone in the fast-food struggles in 2026. In February, Wendy’sannounced the closure of hundreds of locations across the U.S., with its interim CEO Ken Cook, stating that the restaurants it decided to close were also "consistently underperforming."

And while Wendy's is focusing on a plan to roll out new deals and menu items, Popeyes is doubling down on its core offerings: chicken.

“I strongly believe we will find success in the core of what we have always been great at—hand-battered, bone-in chicken,” Perdue said. “We have the menu and pricing power to offer our guests strong, everyday value options. And we have powerful platforms in tenders and sandwiches that will continue to deliver growth.”