Bankrupt Popeyes Franchisee Sues Investment Firm Over Failed Deal
Miami-based Sailormen Inc., a bankrupt Popeyes franchisee, is suing RFI Ventures after the investment firm withdrew from an agreement to purchase 23 of its Orlando-area restaurants for $2.5 million. The deal was part of a larger bankruptcy auction process involving nearly all of Sailormen's locations in Florida and Georgia. Following RFI’s withdrawal, a replacement buyer, SBH Foods PLK, agreed to acquire the same properties at a higher price of $2.7 million. Sailormen is seeking court approval to retain the $2.5 million deposit from RFI as liquidated damages, arguing that the firm's decision to back out was unjustified and in violation of their initial agreement. The franchisee has been working through its Chapter 11 bankruptcy proceedings since January, having estimated over $130 million in debt due to rising operational costs and shifting consumer behavior. This legal action is part of an ongoing effort by Sailormen to sell off the majority of its restaurant portfolio as it attempts to restructure. The company has already secured buyers for 97 locations through various deals, including with Pulse Restaurant Group and other franchisees.
Topics: bankruptcy franchisee investment lawsuit restaurant