SBH Foods will acquire 23 locations in Orlando operated by the bankrupt franchisee Sailormen for $2.7 million after the original deal fell through.

SBH Foods PLK is stepping in to buy 23 bankrupt Popeyes restaurants in the Orlando area after the original deal fell through, according to court documents this week.

The operator is paying $2.7 million for the restaurants, which were once part of the 136-unit franchisee Sailormen, which filed for Chapter 11 bankruptcy protection earlier this year after accumulating too much debt.

Overall, 97 of those 136 locations were sold in an auction earlier this month, most of them to the Pulse Restaurant Group for $2.7 million. David Damato, Sailormen’s CEO, created that operator.

Popeyes corporate is set to buy 16 Miami-area locations for $9.6 million and three locations in West Palm Beach, Florida, are being sold to 61 Biscuits for $1.11 million.

Originally, a company known as RFI Ventures agreed to buy the 23 Orlando locations for $2.5 million.

That deal did not make it to closing, forcing Sailormen to receive special approval to keep operating the restaurants while it scrambled to find a new buyer for the locations.

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Instead, SBH Foods stepped in with an offer for the restaurants. The franchisee was already set to buy five locations in the Savannah, Georgia, market for $650,000.

The remaining 39 locations were expected to close, if they have not closed already.

Sailormen filed for bankruptcy in January with heavy debt and liquidity challenges. The company had about $130 million in debt and faced growing pressure from landlords, vendors, and its lender.

Source https://www.nrn.com/restaurant-franchising/a-new-buyer-steps-in-for-some-bankrupt-popeyes-locations