The bankruptcy case of a Popeyes franchise operator called Sailormen, Inc. is entering a new phase as it proceeds with plans to sell assets. The bankruptcy court is reviewing requests to reject leases tied to dozens of restaurant locations that failed to sell during the company’s Chapter 11 auction process.
The proceedings could also address a dispute over whether certain locations were incorrectly classified as unsold despite being included in a prior sale transaction.
Popeyes Franchisee Seeks Lease Rejection
The latest case revolves around Sailormen, Inc., the franchisee which operated nearly 130 restaurants at the time of its Chapter 11 filing in January 2026. As part of its restructuring, the company aimed to auction its Popeyes restaurant portfolio in regional groups.
According to Fast Company, approximately 52 locations failed to attract buyers during the auction process. The company subsequently asked the court for permission to reject the leases associated with those locations.
Pacermonitor filings show that Sailormen filed an expedited motion on June 19 seeking authority to reject leases tied to multiple Popeyes locations. The locations included restaurants that did not receive successful bids during the auction process.
Significance of the Latest Filing
According to Fast Company, the company’s attorneys cited liquidity concerns in support of the request. The 52 stores that received no bids were contributing to financial losses. If this continued, the operator could lose access to court-approved bankruptcy funding that were crucial to keep the locations running. The company argues that lease rejections are necessary to reduce ongoing losses.
Fast Company reported that the court has already approved lease rejections for 18 locations across Florida and Georgia. These stores, which are spread across Florida and Georgia, could be closed by the end of June.
- 524 Atlantic Blvd., Neptune Beach
- 7507 Atlantic Blvd., Jacksonville
- 814 E. Cervantes St., Pensacola
- 1050 S. Walnut St., Starke
- 18403 S. Dixie Hwy., Cutler Bay
- 2161 S. Byron Butler Pkwy., Perry
- 6401 N. Ninth Ave., Pensacola
- 3716 Gulf Breeze Pkwy., Gulf Breeze
- 450047 State Route 200, Callahan
- 5695 NW 23rd St., Gainesville
- 15655 NW U.S. Hwy. 441, Alachua
- 801 W. Base St., Madison
- 6329 Dr. Martin Luther King Jr. St. N., St. Petersburg
- 11840 State Road 64 E., Bradenton
- 3390 First St., Bradenton
- 397 U.S. Highway 84 E., Cairo
- 615 E. Oglethorpe Ave., Hinesville
- 4933 New Jesup Hwy., Brunswick
Another hearing for the rest of the Popeyes locations could take place of June 26, 2026.
Pacermonitor also shows that the court gave a green signal for only a few lease rejections on June 23, 2026. The approved buyers include SBH Foods, 61 Biscuits, RFI Ventures, LLC, and Pulse Restaurant Group.
Case filings also mention Popeyes, suggesting that some locations may be transferred back or reassigned to the brand or affiliated operators.
Revisiting Bankruptcy Case of the Franchise Operator
The fast-food franchisee sought bankruptcy protection using Chapter 11 proceedings on January 15, 2026. The filing came as the company faced obligations of around 200 to 999 creditors.
Case records showed that the Miami, Florida-based operator employed around 2,200 workforce across locations.
A Buyer Objects to Proposed Lease Rejections
RFI Ventures, LLC objected to the proposed lease rejections, arguing that multiple restaurants listed in the motion were previously acquired by the company as part of the Orlando Market sale approved during the bankruptcy proceedings. It argued that many of the Orlando-area restaurants included in the lease-rejection motion had already been sold to RFI Ventures through the Chapter 11 auction process.
The bankruptcy of Sailormen Inc. is nearing a crucial stage, as several of its locations, including disputed ones await court approval for closure or transfer.
