Sailormen Popeyes – Sailormen Inc., a Miami-area Popeyes franchisee in Chapter 11, faces a new round of lease rejections after an auction failed to find bidders for up to 52 locations. After a June 23 hearing, a U.S. Bankruptcy Court judge approved lease rejections for 18 stores,
For months, Sailormen Inc. has been trying to sell its way out of trouble. Now, the next step could be far harsher: shutting doors.
In the middle of its Chapter 11 case. the Miami franchisee behind Popeyes Louisiana Kitchen says it is likely to “reject” store leases after an auction last week left as many as 52 locations without a bidder. Sailormen’s lawyers warned that those stores have become a “burden on the Debtor’s estate. ” and that as of July 1. 2026 the company would no longer have authority to use cash collateral to operate them.
A U.S. Bankruptcy Court judge in the Southern District of Florida narrowed the immediate impact after a June 23 hearing. The court allowed only 18 lease rejections to proceed. and Sailormen said it would close and vacate the approved restaurants by the end of the month. The affected stores are in Florida and Georgia.
A second hearing is scheduled for June 26 to decide what happens to the remaining leases. Court filings note that Sailormen could still remove stores from the list before the rejections become effective, presumably if a last-minute buyer appears.
The company has not said how many jobs could be affected. Sailormen and its legal counsel did not respond to requests for comment. A spokesperson for Popeyes declined to comment.
The 18 stores approved for lease rejection
Florida
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., Gainsville
15655 NW U.S. Highway 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.
Georgia
397 U.S. Highway 84 E., Cairo
615 E. Oglethorpe Ave., Hinesville
4933 New Jesup Hwy., Brunswick
What pushed Sailormen toward rejection
Sailormen filed for Chapter 11 in January, saying its portfolio included about 130 Popeyes locations at the time of its initial petition. The company had been attempting to sell off its assets, but in an auction last week, up to 52 locations failed to find a bidder.
Sailormen’s initial proposed list included 52 locations. a number the filings described as surprising because it represented almost half of its remaining portfolio. After the June 23 hearing, however, the court granted permission to reject leases for only 18 locations. The June 26 hearing will determine the fate of the rest.
Sailormen has already closed 20 locations as part of its Chapter 11 proceedings.
Why Sailormen says it struggled
In court documents, Sailormen said it was hit by inflationary pressures and soft foot traffic that never fully recovered from the COVID-19 pandemic.
While the exact number of employees tied to the next closures remains unclear, the structure of the case makes the clock feel real: if leases are rejected and the company loses cash-collateral authority to operate certain stores, the remaining options narrow.
Who is buying the remaining stores
The auction did not produce only bad news. Several bidders stepped in to purchase Sailormen’s restaurants—stores viewed as having a better chance for long-term success.
Popeyes itself agreed to buy 16 locations, “most in the Miami area,” according to court documents.
A limited liability company called Pulse Restaurant Group purchased 50 of Sailormen’s locations. Court documents also list David Damato, Sailormen’s CEO, as CEO of Pulse Restaurant Group. Fast Company reached out to Damato for comment.
The larger corporate backdrop
The Popeyes brand is owned by Restaurant Brands International (RBI), the company behind Tim Hortons, Burger King, and Firehouse Subs. At the end of last year, RBI said it had just under 3,600 Popeyes locations in the United States and Canada.
It’s not uncommon for established restaurant chains to pick up locations from failing franchisees. Hardee’s, for example, recently bought and reopened dozens of locations after a legal battle had forced stores to close.
As the June 26 hearing approaches, the decision isn’t just about which leases get rejected. It’s about which locations can still be saved—either by a buyer finding a path forward in time. or by the court granting more rejection authority. For Sailormen’s remaining portfolio, the next few days may be the difference between a sale and a shutdown.
This story is developing and may be updated…
Popeyes Sailormen Inc franchise bankruptcy Chapter 11 lease rejection U.S. Bankruptcy Court for the Southern District of Florida Florida closures Georgia closures Restaurant Brands International RBI David Damato Pulse Restaurant Group Miami area cash collateral
So they can just reject leases mid-bankruptcy? That seems shady.
Wait, I thought Popeyes was doing fine? If they close 52 in FL/GA that’s insane. Hope the workers get something, but usually they don’t.
This says auction failed to find bidders, but somehow it’s still Popeyes’ fault? Like the brand should’ve bailed them out. Also why would they wait til July 1, 2026? That’s like forever away.
I don’t even know which one near me is part of this Sailormen thing, but I swear every fast food place is “in trouble” now. It’s weird the court only approved 18 at first… so the rest is just hanging there. If a last-minute buyer shows up, they suddenly get to keep the stores? Feels like a loophole.