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Over the past many months, hundreds of stores across the country have closed. Giant retailers like Bed, Bath & Beyond, Tuesday Morning and Christmas Tree Shops have shuttered all their locations after declaring bankruptcy, while TGI Fridays, Boston Market, Pizza Hut, Sears, Walgreens and CVS are closing down locations as a cost-cutting measure. Now, one of the nation's most popular fried chicken chains is closing restaurants due to a bankruptcy.
Popeyes locations are shuttering after one of their franchisees filed for bankruptcy. In the court filing, Georgia-based RRG Inc., which owns 17 Popeyes, revealed they owe between one million and ten million in liabilities with less than $50,000 in assets. RRG stated that three of their Popeyes restaurants "have significantly lost money and caused a financial burden on the continued operation of the remaining restaurants." For that reason, they are closing the underperforming eateries. No word on where they are located but most restaurants owned by RRG are in Georgia and Florida.
Meanwhile, RRG isn't the first Popeyes franchisee to have to declare bankruptcy. Another, Premier Kings Cajun, also filed for bankruptcy last year. RRG even bid on some of Premier's Popeyes locations. As for other Popeyes franchisees, they might also follow suit and close locations as well. It seems to be the strategy many companies have been implementing lately - restructuring by closing restaurants that aren't profiting so they can focus on the successful locations.