Beloved fast-food chicken chain faces Chapter 7 bankruptcy, liquidation

A as soon as-smartly-liked lickety-split-food chain that has already shuttered most of its locations is liable to be heading for a total shutdown. The corporate is awaiting a key dedication that will settle whether it restructures or recordsdata for Chapter 7 financial damage, which would lead to liquidation and the closure of its closing restaurants.

As soon as a company recordsdata Chapter 11 financial damage, it provides up administration of its future, and one smartly-liked lickety-split-food fried rooster chain has realized that doing that puts its very survival at possibility.

The 2nd a financial damage courtroom prefer accepts a company's Chapter 11 filing, the courtroom then retains the final hiss. That blueprint that a prefer may derive or reject the corporate's plans.

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It is no longer exceptional for a company to be liquidated since the industrial damage courtroom believes that's the suitable view for vendors, landlords, and workers owed money. In many cases, even when a financial damage prefer accepts a view to emerge from Chapter 11 financial damage, it comes with strings hooked up.

That's what's occurring in the case of Sticky's, formerly Sticky's Finger Joint. The smartly-liked lickety-split-food fried rooster chain filed for Chapter 11 financial damage over a year ago and has since closed most of its locations

The chain has a view, and a financial backer, to emerge from Chapter 11 financial damage, nonetheless the view has easiest been tentatively accepted by the Delaware financial damage courtroom.

If the chain can no longer procure a extra formal view agreed upon and approved, the prefer has made it clear that it may well pressure the chain into Chapter 7 financial damage.

Sticky's fried rooster chain fights for survival

Sticky's has been on the brink of the cease, being compelled reliable into a Chapter 7 financial damage liquidation for months. The as soon as 12-situation chain has closed many of its stores and has been operating with the threat of closure putting over it.

A June courtroom hearing denied the corporate permission to sell itself for $2 million to Harker Palmer, an funding firm.

"The money we make investments is our money. That blueprint we are able to work with founders to procure trace for the prolonged-term without the necessity to take into memoir 'exits' or 'timelines.' We are able to hold choices in response to our dedication to sound commerce technique and maximizing prolonged-term trace," the funding company shared on its web situation.

In June, the industrial damage courtroom did terminate wanting forcing the corporate reliable into a Chapter 7 financial damage liquidation. As an alternative, it gave the corporate beyond regular time to hold a take care of its debt-holders, and in July, a deal changed into tentatively approved.

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• Trendy pizza eating chain franchisee recordsdata Chapter 11 financial damage
• Well-known trucking operation recordsdata Chapter 11 financial damage
• Las Vegas on line casino proprietor recordsdata for Chapter 11 financial damage

Where Sticky's fried rooster stands now

• A June 6 hearing to prefer on the revised view took location as scheduled.
• As of June 10, 2025, a Bloomberg file confirmed the courtroom refused changes that would decrease administrative claim funds — mandating paunchy charge except collectors agreed otherwise.
• In July 2025, a courtroom ruling granted tentative approval for a $2 million asset sale and allowed Sticky’s to continue operating below Chapter 11, delaying Chapter 7 liquidation for now.

Sticky's aloof has work to realize

Beneath the particular form of Chapter 11 financial damage Sticky's filed, it has to pay off its vendors, landlord, and other claims in mutter to emerge from the proceedings. The July courtroom dedication allowed it to pay off US Meals, an wanted provider, nonetheless it aloof has to hold provides with other collectors.

When it's no longer in courtroom battling to retain a ways flung from Chapter 7 financial damage liquidation, Sticky's has a rather easy mission.

"Sticky’s changed into created out of a love for rooster fingers and the will to think exterior of the box. Our founders realized that there had been more than a couple of New Yorkers who essentially beloved rooster fingers nonetheless didn’t possess a truly perfect location to procure them; and thus, Sticky’s changed into born! Our mission is to place the suitable damn skills via the comfort of rooster fingers in a enjoyable, inclusive space," it shared on its web situation.

The chain has formally closed three locations and one ghost kitchen, though it's unclear if extra possess, or will most possible be, closed.

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Harker Palmer is a fingers-on investor.

"We should no longer entrepreneurs, nonetheless now we possess spent our profession backing these who are. Our job is to benefit entrepreneurs...whatever that takes. We may benefit formulate technique, recruit administration skills, procure entry to commerce connections, elevate yell capital....or merely be any individual to test with. We are never panicked to roll up our sleeves and benefit the target of sustained, quality yell," the funding firm posted.

If Sticky's is compelled into Chapter 7 Chapter, right here’s what happens:

• A courtroom-appointed trustee sells the corporate’s belongings
• Final stores are closed completely
• Customers may no longer be in a location to utilize gift playing cards
• Workers are in most cases laid off without severance