Fans may breathe a little easier, but the battered New\u202fYork chicken\u2011finger chain still faces a steep climb back to stability.<\/p>\n\n\n\n
Sticky\u2019s Finger Joint, the once\u2011buzzy fried\u2011chicken upstart with cult\u2011favorite sauces, has secured tentative court approval to sell its assets for\u202f$2\u202fmillion and keep operating under Chapter\u202f11 protection. The ruling, handed down by a Delaware bankruptcy judge this week, spares the brand from an immediate Chapter\u202f7 liquidation\u2014but only if it can nail down a revamped reorganization plan in the weeks ahead.<\/p>\n\n\n\n
Move over, burgers: fried chicken has become America\u2019s most cut\u2011throat battlefield. From KFC and Popeyes to celebrity\u2011backed concepts by Guy\u202fFieri and Shaquille\u202fO\u2019Neal, the field is jam\u2011packed. Sticky\u2019s tried to stand out with antibiotic\u2011free chicken and 18 house\u2011made sauces, yet the pandemic, surging poultry costs, and New\u202fYork City\u2019s congestion pricing hammered margins. Who saw that coming?<\/p>\n\n\n\n
The company entered Chapter\u202f11 nearly a year ago, reporting just $0.5\u2013$1\u202fmillion in assets against as much as $10\u202fmillion in debt. It has already closed three storefronts and a ghost kitchen. Tuesday\u2019s order lets investment fund Harker\u202fPalmer scoop up the brand, satisfying key creditor U.S.\u202fFoods and\u2014crucially\u2014buying time to finalize a turnaround blueprint.<\/p>\n\n\n\n