Popeyes Closure Ticks Up After Largest Franchise Files for Bankruptcy

Three Popeyes stores have closed after a Popeyes franchisee filed for bankruptcy earlier this year.

Sailormen Inc. filed for bankruptcy on January 15, 2026, a court filing showed.

According to the March 10 filing seen by Newsweek, the franchisee closed three locations before it filed for bankruptcy but the closures were revealed in a motion which Sailormen Inc. filed to reject the unexpired leases of these locations.

Newsweek reached out to Popeyes by email to comment on this story.

Why It Matters

Sailormen Inc. owns over 130 Popeyes stores, according to multiple reports. The closure of the stores could contribute to increased unemployment in the areas they are located in and will put pressure on the Popeyes brand.

What To Know

The three closed locations were in Georgia, according to the court filing. A January 26 filing had previously revealed that Sailormen Inc. had closed 17 stores in Georgia and Florida.

The court filing said these restaurant closures would “reduce the Debtor’s SG & A [selling, general and administrative] and restaurant level expenses annually by over $1.0 million.”

Other companies have been affected by bankruptcy. Saks Global, the parent company of luxury retailer Saks Fifth Avenue, announced it was shuttering additional stores as part of a “strategic optimization” of its portfolio after filing for bankruptcy early in the year. Saks Global told Newsweek in January that it expected to emerge from the bankruptcy process “as a stronger company later this year.”

The restaurant closures come amid broader economic pressures in the U.S. economy, despite the outplacement firm Challenger, Gray & Christmas releasing its latest monthly layoff report earlier this month, which revealed that job cut announcements plummeted 55 percent between January and February to 48,307.

It was the closures of stores, units or departments that drove the most layoffs in February, totaling 10,736. Other reasons cited in the announcements included market and economic conditions (10,114), restructuring (9,146) and cost-cutting (5,636) and artificial intelligence (4,608).

What People Are Saying

The court filing said: “The Debtor entered into certain lease agreements for the use of commercial property in connection with operating various Popeyes restaurants (the “Restaurants”). Before the filing of this case, the Debtor closed three locations that are the subject of this Motion. Those locations have not operated since before the Petition Date.”

What Happens Next

Sailormen Inc. and Popeye’s economic fortunes will likely fluctuate in the months and years to come.