A once-popular fast-food chain that has already shuttered most of its places could also be heading for an entire shutdown. The corporate is awaiting a key determination that might decide whether or not it restructures or recordsdata for Chapter 7 chapter, which might result in liquidation and the closure of its remaining eating places.
As soon as an organization recordsdata Chapter 11 chapter, it offers up management of its future, and one well-liked fast-food fried rooster chain has discovered that doing that places its very survival in danger.
The second a chapter court docket choose accepts an organization’s Chapter 11 submitting, the court docket then retains the final word say. That signifies that a choose might settle for or reject the corporate’s plans.
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It is not unprecedented for a corporation to be liquidated as a result of the chapter court docket believes that is one of the best plan for distributors, landlords, and staff owed cash. In lots of instances, even when a chapter choose accepts a plan to emerge from Chapter 11 chapter, it comes with strings hooked up.
That is what’s occurring within the case of Sticky’s, previously Sticky’s Finger Joint. The favored fast-food fried rooster chain filed for Chapter 11 chapter over a yr in the past and has since closed most of its places
The chain has a plan, and a monetary backer, to emerge from Chapter 11 chapter, however the plan has solely been tentatively accepted by the Delaware chapter court docket.
If the chain cannot get a extra formal plan agreed upon and authorized, the choose has made it clear that it’ll power the chain into Chapter 7 chapter.
Sticky’s fried rooster chain fights for survival
Sticky’s has been on the sting of the top, being pressured right into a Chapter 7 chapter liquidation for months. The as soon as 12-location chain has closed lots of its shops and has been working with the specter of closure hanging over it.
A June court docket listening to denied the corporate permission to promote itself for $2 million to Harker Palmer, an funding agency.
“The cash we make investments is our cash. Which implies we are able to work with founders to construct worth for the long-term with out the necessity to consider ‘exits’ or ‘timelines.’ We are able to make decisions based mostly on our dedication to sound enterprise technique and maximizing long-term worth,” the funding firm shared on its web site.
In June, the chapter court docket did cease in need of forcing the corporate right into a Chapter 7 chapter liquidation. As a substitute, it gave the corporate extra time to make a take care of its debt-holders, and in July, a deal was tentatively authorized.
Extra Chapter:
- Fashionable pizza eating chain franchisee recordsdata Chapter 11 chapter
- Main trucking operation recordsdata Chapter 11 chapter
- Las Vegas on line casino proprietor recordsdata for Chapter 11 chapter
The place Sticky’s fried rooster stands now
- A June 6 listening to to resolve on the revised plan happened as scheduled.
- As of June 10, 2025, a Bloomberg report confirmed the court docket refused modifications that would scale back administrative declare funds — mandating full cost until collectors agreed in any other case.
- In July 2025, a court docket ruling granted tentative approval for a $2 million asset sale and allowed Sticky’s to proceed working below Chapter 11, delaying Chapter 7 liquidation for now.
Sticky’s nonetheless has work to do
Below the precise kind of Chapter 11 chapter Sticky’s filed, it has to repay its distributors, landlord, and different claims with a purpose to emerge from the proceedings. The July court docket determination allowed it to repay US Meals, an important vendor, however it nonetheless has to make offers with different collectors.
When it is not in court docket battling to keep away from Chapter 7 chapter liquidation, Sticky’s has a reasonably easy mission.
“Sticky’s was created out of a love for rooster fingers and the need to suppose exterior of the field. Our founders realized that there have been quite a lot of New Yorkers who actually beloved rooster fingers however didn’t have an awesome place to get them; and thus, Sticky’s was born! Our mission is to create one of the best rattling expertise via the consolation of rooster fingers in a enjoyable, inclusive house,” it shared on its web site.
The chain has formally closed three places and one ghost kitchen, though it is unclear if extra have, or shall be, closed.
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Harker Palmer is a hands-on investor.
“We aren’t entrepreneurs, however now we have spent our profession backing those that are. Our job is to assist entrepreneurs…no matter that takes. We might assist formulate technique, recruit administration expertise, entry business connections, increase progress capital….or simply be somebody to speak to. We’re by no means afraid to roll up our sleeves and assist the aim of sustained, high quality progress,” the funding agency posted.
If Sticky’s is pressured into Chapter 7 Chapter, right here’s what occurs:
- A court-appointed trustee sells the corporate’s belongings
- Remaining shops are closed completely
- Clients might not be capable of use present playing cards
- Staff are usually laid off with out severance
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