When a Popeyes Franchise Empire Went Bankrupt, Five Savvy Buyers Picked Up 97 Restaurants for a Steal
Sailormen Inc. built one of Popeyes’ largest franchise operations, but when it filed for bankruptcy in January, opportunistic buyers swept in.
Sailormen Inc. spent 40 years building one of the largest Popeyes Louisiana Kitchen franchise operations in the country. At its peak, the Miami-based company ran 136 restaurants across Florida and Georgia, employed more than 3,300 people and pulled in $233 million in annual sales. Then it ran out of spinach.
Crushed by inflation, rising borrowing costs and labor shortages, Sailormen filed for bankruptcy in January. Last week, a federal bankruptcy judge approved the sale of 97 of its restaurants to five buyers for a combined $16.55 million — a fraction of what they’re worth in a functioning business, according to QSR Magazine.
But here’s the twist. The biggest buyer, Pulse Restaurant Group, snapped up 50 Tampa-area locations for just $2.69 million. Pulse was founded by Sailormen’s own CEO, David Damato — meaning the man who ran the company into bankruptcy turned around and bought its best restaurants back at a steep discount. Popeyes corporate grabbed 16 Miami locations for $9.6 million. Three other buyers split the rest. The remaining 39 restaurants that found no buyers are expected to close for good.
Sailormen Inc. spent 40 years building one of the largest Popeyes Louisiana Kitchen franchise operations in the country. At its peak, the Miami-based company ran 136 restaurants across Florida and Georgia, employed more than 3,300 people and pulled in $233 million in annual sales. Then it ran out of spinach.
Crushed by inflation, rising borrowing costs and labor shortages, Sailormen filed for bankruptcy in January. Last week, a federal bankruptcy judge approved the sale of 97 of its restaurants to five buyers for a combined $16.55 million — a fraction of what they’re worth in a functioning business, according to QSR Magazine.
But here’s the twist. The biggest buyer, Pulse Restaurant Group, snapped up 50 Tampa-area locations for just $2.69 million. Pulse was founded by Sailormen’s own CEO, David Damato — meaning the man who ran the company into bankruptcy turned around and bought its best restaurants back at a steep discount. Popeyes corporate grabbed 16 Miami locations for $9.6 million. Three other buyers split the rest. The remaining 39 restaurants that found no buyers are expected to close for good.
