Major Fried Chicken Franchisee Closes Stores in Bankruptcy

Hamburger chains dominated the fast food sector in the 1980s and 1990s after the “burger wars” launched between McDonald’s, Burger King and Wendy’s.

The Burger Wars turned into the original Chicken Sandwich War, also in the 1980s, between the same three rivals. It was revived in the new millennium with Popeyes’ launch of the chicken sandwich in August 2019.

Rival Chick-fil-A countered Popeyes’ new sandwich with a statement on Twitter that its sandwich was the original, introduced in 1964, and fast-food chains everywhere began introducing or reintroducing chicken sandwiches.

With the release of all these chicken sandwiches, fried chicken restaurants have become the most popular concept in fast food.

Fried chicken chain restaurants are likely to remain the most popular subsector of the fast food industry in 2026 if the concept continues the trend established over the past year.

Traffic to chicken concepts grew 3% in the year ending September 2025, while all concepts fell 1% from the previous year, according to market research firm Circana, as reported by Fast Company.

The variety of chicken options offered, such as chicken nuggets, chicken fingers or chicken sandwiches, and how consumers enjoy their choices may contribute to the concept’s continued popularity, one expert says.

“It’s because of the experiences that brands are creating and the variety of chicken and how you can enjoy it,” industry expert Reilly Newman of Motif Brands told The Food Institute. “This is hardly surprising as the experience economy has taken root across the globe.

“The chicken allows for (extensive) customization, sauces and shapes, depending on the buyer’s preferences,” Newman said.

Not all fast food chicken restaurants benefited from increased traffic in 2025, as some operators experienced financial difficulties that led to bankruptcy.

APopeyes franchisee rejects leases at 17 locations after filing for Chapter 11 bankruptcy.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
APopeyes franchisee refuses to lease 17 locations after filing for Chapter 11 bankruptcy.Shutterstock · Shutterstock

A bankrupt operator of more than 130 Popeyes Louisiana Kitchen franchise restaurants has closed 17 underperforming locations in Florida and Georgia and filed a motion to reject all store leases.

The franchisee, Sailormen Inc., which filed for Chapter 11 bankruptcy protection on Jan. 15, filed a motion in U.S. Bankruptcy Court for the Southern District of Florida in Miami to reject the leases after closing eight locations on Jan. 19, five locations on Jan. 20 and four locations on Jan. 22, according to court documents.

Debtor argues that the leases should be dismissed as of the date of the petition, as the restaurants were closed within a week of the date of petition and before the Debtor’s first-day motions were heard.

More bankruptcies:

Wholly owned subsidiary of Interfoods of America Inc. of Miami, Fla., believes closing the 17 unprofitable locations will reduce the debtor’s selling, general and administrative expenses by more than $1 million annually.

The debtor removes equipment and other personal property from the premises to be reassigned or sold.

Mariners filed for Chapter 11 protection after a failed sale of certain locations, a default on credit facilities and a series of lawsuits and store closings caused the company financial difficulties, RK Consultants reported.

Sailormen, which was founded in 1987 with 10 locations, is one of the largest domestic Popeyes franchisees in the company’s system, with more than 136 locations in Florida and Georgia. It currently employs approximately 2,900 people.

The debtor at one point owned many more locations but streamlined its portfolio in 2018 by divesting assets in Alabama, Louisiana and Mississippi to focus on its core Southeast markets.

Mariners had to file for bankruptcy after suffering severe liquidity constraints, which worsened after a proposed $1 million divestiture of 16 Georgia locations collapsed, leading to lawsuits and restaurant closings, according to court documents.

The debtor defaulted on approximately $130 million in credit facilities held by BMO Bank NA. The creditor filed a complaint against the debtor in December 2025 and sought to appoint a receiver in early January 2026, prompting the bankruptcy filing, Bondoro reported.

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Related: 106-year-old retailer closing all stores in Chapter 11 bankruptcy

This story was originally published by TheStreet on January 31, 2026, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.

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