RRG Inc., a Georgia-based Popeyes franchisee, filed for Chapter 11 bankruptcy citing the failure of three of its 17 locations being a burden to the overall business.
Another Restaurant Brands International franchisee filed for bankruptcy. Georgia-based RRG Inc. filed for Chapter 11 protection in the U.S. Bankruptcy Court for Southern District of Georgia on January 31. The franchisee owns 17 Popeyes restaurants.
RRG’s debts applies to vendors, rent, taxes and credit debt with a claim to Merchants Food Service up to $316,660 and rent payments up to $238,595 to one landlord. According to the court filing, RRG owes between $1,000,001 to $10 million in liabilities to 100 to 199 creditors with less than $50,000 in assets.
Popeyes franchisee Premier Kings Cajun filed for bankruptcy last year, following the death of its founder, Manraj “Patrick” Sidhu in 2022. The company’s Burger King portfolio, Premier Kings, filed for Chapter 11 later in 2023.
RRG wrote in the filing that three of its Popeyes units “have significantly lost money and caused a financial burden on the continued operation of the remaining restaurants.” Mark and Jane Rinna, president and vice president of RRG, are reportedly behind on lease payments for the successful restaurants and need to “cure those arrearages to avoid lease termination,” the filing states.
RRG plans to close the three failing restaurants and continue operating the profitable ones.
RRG’s attorney, Bowen Klosinski of Klosinski Overstreet, did not immediately respond to request for comment. Popeyes corporate also did not provide comment.
Among Premier King’s 172 Burger King locations, RRG was a stalking horse bidder at $15.5 million for 44 locations in Savannah, Georgia, and Jacksonville, Florida.
RBI franchisees experienced several bankruptcies in 2023, including three major Burger King franchisees—TOMS King, Premier Kings and Meridian Restaurants Unlimited—and a Firehouse Subs owner.
The brand revealed plans to turn Burger King around with its $400 million “Reclaim the Flame” initiative in 2022. Same-stores sales increased in 2023, which RBI says points to the success of the initiative.
Related: Bankruptcy Filings Spark Questions About Restaurant Franchisee Outlook
RBI announced in January the acquisition of Carrols Restaurant Group, the largest United States Burger King operator with 1,000 Burger Kings as well as 65 Popeyes.