Fans may breathe a little easier, but the battered New York chicken‑finger chain still faces a steep climb back to stability.
Sticky’s Finger Joint, the once‑buzzy fried‑chicken upstart with cult‑favorite sauces, has secured tentative court approval to sell its assets for $2 million and keep operating under Chapter 11 protection. The ruling, handed down by a Delaware bankruptcy judge this week, spares the brand from an immediate Chapter 7 liquidation—but only if it can nail down a revamped reorganization plan in the weeks ahead.
How the crowded fried chicken market pushed Sticky’s toward insolvency despite early buzz
Move over, burgers: fried chicken has become America’s most cut‑throat battlefield. From KFC and Popeyes to celebrity‑backed concepts by Guy Fieri and Shaquille O’Neal, the field is jam‑packed. Sticky’s tried to stand out with antibiotic‑free chicken and 18 house‑made sauces, yet the pandemic, surging poultry costs, and New York City’s congestion pricing hammered margins. Who saw that coming?
The company entered Chapter 11 nearly a year ago, reporting just $0.5–$1 million in assets against as much as $10 million in debt. It has already closed three storefronts and a ghost kitchen. Tuesday’s order lets investment fund Harker Palmer scoop up the brand, satisfying key creditor U.S. Foods and—crucially—buying time to finalize a turnaround blueprint.
| Bankruptcy snapshot | Figure | Notable detail |
|---|---|---|
| Reported assets | $0.5–$1 M | Mostly equipment and inventory |
| Reported liabilities | Up to $10 M | Largest claim: U.S. Foods |
| Locations closed | 4 | Three stores, one ghost kitchen |
| Sale offer | $2 M | Prevents Chapter 7 conversion |
Consequently, Sticky’s must still negotiate leases, reassure suppliers, and lure back pandemic‑shy diners. So, what’s next for your favorite dipping‑sauce destination?
Next steps for customers, workers, and investors as the restructuring story continues to unfold
If the revised Chapter 11 plan wins approval, Sticky’s vows to keep serving those crave‑worthy fingers while Harker Palmer injects capital for menu tweaks and measured expansion. Employees should expect operations to remain normal during court proceedings, though additional store pruning is possible. Creditors, meanwhile, will watch cash‑flow benchmarks that trigger payout schedules.
For loyal patrons, the message is simple: grab your preferred sauce, keep those receipts, and follow the docket. A final confirmation hearing is expected later this summer; until then, Sticky’s stays open—and the fried‑chicken wars rage on.