Latest news with #Sticky's
Yahoo
a day ago
- Business
- Yahoo
Popular Eastern fried chicken chain fights bankruptcy to stay open
A beloved fried chicken chain based on the East Coast is struggling to keep its doors open. Sticky's, formerly known as Sticky's Chicken Joint, launched in 2012 and became famous in New York and New Jersey for its farm-raised, antibiotic-free chicken with a variety of sauces such as 'Thai Sweet Chili' and 'Caribbean Sweet Heat.' Operating 12 locations across New York and New Jersey, the restaurant chain filed for Chapter 11 bankruptcy in April 2024 in a bid to cut its debts. The filing for bankruptcy was largely due to the severe impact of the COVID-19 pandemic, as Sticky's heavily relied on New York City foot traffic and has since had a hard time bouncing back, Mens Journal wrote. As a potential resolution, Sticky's received a $2 million cash offer from Harker Palmer Investors. The deal would involve the investors purchasing the chain, taking responsibility for some of its debts and preventing Sticky's from moving Chapter 11 bankruptcy into Chapter 7 liquidation, Food Republic wrote. However, the restaurant is still actively seeking approval for a new Chapter 11 bankruptcy plan. The proposed sale received pushback from the Justice Department's bankruptcy watchdog, the U.S. Trustee, claiming the deal would give Palmer 'too much legal protection if the company were sued in the future,' according to the Daily Mail. Sticky's warned last week that it would be forced into Chapter 7 liquidation, causing the shutdown of all stores and leaving creditors empty-handed if the sale is not approved. Read the original article on MassLive.
Yahoo
3 days ago
- Business
- Yahoo
Beloved Fried Chicken Chain Warns of Closing All Locations
If you've ever traveled to the New York area in recent years, there's a chance that you've enjoyed Sticky's – a unique and iconic New York fried chicken spot. But recent events could force the beloved New York chain to close all locations. Sticky's Chicken Joint is a beloved New York fried chicken chain with 12 locations throughout the area. Launched in 2012, Sticky's quickly became a beloved fast-casual hot spot with its farm-raised, antibiotic-free chicken and several unique sauce flavors. However, despite its popularity, the chain was hit hard by the COVID-19 pandemic due to its dependence on New York foot traffic and had a hard time bouncing back. Ultimately, Sticky's filed for Chapter 11 bankruptcy in April of last year to help cut its debts and chart a path forward. However, it sounds like the beloved chain has run into some issues. Sticky's has received a $2 million cash offer from Harker Palmer Investors, who would purchase the chain and take responsibility for some of its debts. However, the U.S. Trustee – the Justice Department's bankruptcy watchdog – is pushing back against the deal. U.S. Trustee claims that the deal would give Harker Palmer too much legal protection if the company were ever sued in the future, complicating the sale process. Harker Palmer has since revised the terms of the agreement in an attempt to satisfy the government watchdog. If that does not work, Sticky's has issued an ominous warning about its future if the sale does not go through. In a court filing last week, the firm warned that if the sale is not approved, the beloved fried chicken chain will be forced into Chapter 7 liquidation, which would mean closing all stores and selling off its assets, according to Bloomberg. We'll have to see whether or not the updated terms of the sale will be accepted by the U.S. Trustee. Beloved Fried Chicken Chain Warns of Closing All Locations first appeared on Men's Journal on Jun 10, 2025 Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Beloved Fried Chicken Chain Warns of Closing All Locations
If you've ever traveled to the New York area in recent years, there's a chance that you've enjoyed Sticky's – a unique and iconic New York fried chicken spot. But recent events could force the beloved New York chain to close all locations. Sticky's Chicken Joint is a beloved New York fried chicken chain with 12 locations throughout the area. Launched in 2012, Sticky's quickly became a beloved fast-casual hot spot with its farm-raised, antibiotic-free chicken and several unique sauce flavors. However, despite its popularity, the chain was hit hard by the COVID-19 pandemic due to its dependence on New York foot traffic and had a hard time bouncing back. Ultimately, Sticky's filed for Chapter 11 bankruptcy in April of last year to help cut its debts and chart a path forward. However, it sounds like the beloved chain has run into some issues. Sticky's has received a $2 million cash offer from Harker Palmer Investors, who would purchase the chain and take responsibility for some of its debts. However, the U.S. Trustee – the Justice Department's bankruptcy watchdog – is pushing back against the deal. U.S. Trustee claims that the deal would give Harker Palmer too much legal protection if the company were ever sued in the future, complicating the sale process. Harker Palmer has since revised the terms of the agreement in an attempt to satisfy the government watchdog. If that does not work, Sticky's has issued an ominous warning about its future if the sale does not go through. In a court filing last week, the firm warned that if the sale is not approved, the beloved fried chicken chain will be forced into Chapter 7 liquidation, which would mean closing all stores and selling off its assets, according to Bloomberg. We'll have to see whether or not the updated terms of the sale will be accepted by the U.S. Trustee. Beloved Fried Chicken Chain Warns of Closing All Locations first appeared on Men's Journal on Jun 10, 2025 Sign in to access your portfolio
Miami Herald
06-06-2025
- Business
- Miami Herald
After Chapter 11 bankruptcy, fast-food chain faces liquidation
Chicken has become a major battleground in the fast food space. You have your dedicated chicken chains like KFC and Chick-fil-A, and there's also Popeye's, Zaxby's, Raising Cane's, and countless others devoted specifically to selling chicken. You also have McDonald's Burger King, and Wendy's, which have all made chicken, a major part of the menu. Related: Popular Latin American chain files bankruptcy, closes restaurants That makes it incredibly hard to break into the space. Maybe you can offer a better product but does that difference matter when so many other chains, with so many locations are your competition? In some ways, fried chicken has become like craft beer. There are a lot of people who are very passionate about it that want to enter the space, but it's nearly impossible to differentiate yourself. Trying to market your chicken chain as superior to others seems like a really challenging idea, That's exactly what Sticky's has tried to do boldly using the marketing line "the best damn chicken finger you have ever tasted." Don't miss the move: Subscribe to TheStreet's free daily newsletter The company tried to justify that boast on its website. "Sticky's was created out of a love for chicken fingers and the desire to think outside of the box. Our founders realized that there were a lot of New Yorkers who really loved chicken fingers but didn't have a great place to get them; and thus, Sticky's was born! Our mission is to create the best damn experience through the comfort of chicken fingers in a fun, inclusive space," it shared. Image source: Getty Images While it opened with noble intentions (or at least lofty goals), Sticky's was not able to deliver. The chain has been in Chapter 11 bankruptcy for almost a year. During its period of court protection, the company closed three locations and a ghost kitchen. At the time of its filing with U.S. Bankruptcy Court for the District of Delaware, the company reported $500,000-$1 million in assets and $1 to $10 million in liabilities, with the largest creditor being distributor U.S. Foods. It seemed in late-April that the chain had found a lifeline. More Food & Dining: Popular Mexican chain closing all restaurants, no bankruptcyIconic Warren Buffett candy store suddenly closing after 30 yearsWalmart's Sam's Club makes a Costco-style food court changePopular Trader Joe's wine brand has bad news, making harsh choice "Sticky's won a Delaware bankruptcy judge's tentative permission Tuesday to sign a contract to sell its assets to an investment fund for $2 million after surging poultry prices and New York City's congestion pricing program imperiled the company's Chapter 11 turnaround plan," Law360 reported on April 30. That court order is now under scrutiny which could lead to the company being liquidated. Harker Palmer Investors LLC tried to defend its offer in a June 3 court filing in the US Bankruptcy Court for the District of Delaware. The company sought to answer an objection from a Justice Department bankruptcy watchdog objection to the $2 million deal. It argued that the US Trustee's legal arguments are "unsupported" and that no creditors - including landlords and supplier US Foods - oppose the revised proposa," Bloomberg Law first reported. If the offer is not approved, Harker Palmer's lawyers argued, the fried chicken chain will have to be liquidated. "If the Modified Plan is not confirmed, conversion to Chapter 7 will follow resulting in no recovery to any creditors," the firm said in the filing. Chapter 7 would involve a trustee-supervised liquidation process. Related: Subway owner makes major billion-dollar fast food acquisition Sticky's, which has also faced a lawsuit over its name, built its business on the idea that it offers higher-quality chicken fingers than its rivals. "At Sticky's we use the finest ingredients, including fresh never frozen antibiotic-free chicken. We take great pride in what we do and what we serve. With a selection of over 18 sauces made in house, it is a labor of love. We believe this process is necessary to serve our customers 'The Best Damn Chicken,' it posted on its website. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
30-04-2025
- Business
- Miami Herald
Fast-food chicken chain faces Chapter 11 bankruptcy, liquidation
Fried chicken has become a massive battleground. That's because in addition to chicken being a growth area, nobody agrees on the best fried chicken. That makes anyone with a half-decent fried chicken recipe to think they should enter the fray. Related: Another popular brewery files Chapter 7 bankruptcy to liquidate The problem is that the competition when it comes to chicken wings, chicken fingers, and other fried chicken is that they're ubiquitous. The fried chicken market may be more crowded than the hamburger space and it has attracted huge names. Both Guy Fierii and Shaquille O'Neal (both celebrity chefs and basketball players of somewhat varying skills) have chains based around fried chicken. McDonald's has spent the past few years building its McCrispy into a d billion-dollar brand and recently brought back its Chicken Selects chicken finger product. Entering the fried chicken space where you also have fast-food market leaders KFC and Popeye's, almost seems foolish, or at the very least arrogant, but that has not stopped a seemingly endless number of companies from trying. Don't miss the move: Subscribe to TheStreet's free daily newsletter Trying, however, and succeeding, at least building a long-term success are very different things. Another popular fried chicken chain, which has tried to carve out a space in a very crowded market is struggling for survival. The chain has closed some locations and its overall survival has very much been in doubt. A new court ruling as part of its Chapter 11 bankruptcy does, however, give fans of the brand some clarity as to what happens next. While fried chicken chains come and go, Sticky's has managed to grab a foothold in a very crowded market. "Sticky's was created out of a love for chicken fingers and the desire to think outside of the box. Our founders realized that there were a lot of New Yorkers who really loved chicken fingers but didn't have a great place to get them; and thus, Sticky's was born! Our mission is to create the best damn experience through the comfort of chicken fingers in a fun, inclusive space," the chain shared on its website. It's hard to imagine exactly where in New York you would have to be to not be at least near some pretty decent chicken fingers, but Sticky's did find an audience. The chain did try to make an effort to standout. Bankruptcies: Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy "At Sticky's we use the finest ingredients, including fresh never frozen antibiotic-free chicken. We take great pride in what we do and what we serve. With a selection of over 18 sauces made in house, it is a labor of love. We believe this process is necessary to serve our customers 'The Best Damn Chicken,' it added. Covid, however, was a blow Sticky's never recovered from and which pushed the chain into Chapter 11 bankruptcy and the brink of closing all its stores. Sticky's has been in Chapter 11 bankruptcy for almost a year. During its period of court protection, the company closed three locations and a ghost kitchen. At the time of its filing with the United States Bankruptcy Court for the District of Delaware, the company reported $500,000-$1 million in assets and $1 to $10 million in liabilities, with the largest creditor being distributor U.S. Foods. U.S. Foods is also the key creditor to the struggling Boston Market rotisserie chicken chain. Sticky's also faced a lawsuit over its name being too close to a South Carolina rival and alegal judgment against it for vacating its New York City headquarters early in violation of its lease. The company, however, has remained open and now it has received new court approvals that will set its next steps forward. "Sticky's won a Delaware bankruptcy judge's tentative permission Tuesday to sign a contract to sell its assets to an investment fund for $2 million after surging poultry prices and New York City's congestion pricing program imperiled the company's Chapter 11 turnaround plan," Law360 reported. Related: Another fast-food burger chain closes all US, UK locations Under the terms of the deal Harker Palmer will acquire the brand and keep it from an "imminent" Chapter 7 bankruptcy filing. The deal will allow Sticky's to stay open, but it still needs to have the judge approve a revised Chapter 11 bankruptcy plan. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
