A POPULAR chicken joint could soon close its doors for good.
The fast food chain has struggled financially since the Covid pandemic.
Sticky’s may be forced to file for bankruptcy[/caption]
It filed for Chapter 11 bankruptcy in 2024.
But if Sticky’s doesn’t come up with a solution to settle its debts soon, the chain may resort to Chapter 7 bankruptcy.
That would force it to liquidate its assets and shut down all remaining locations.
The New York-based chain once ran 12 locations including some in New Jersey.
It has already shut down most of its restaurants.
But earlier in July, a court ruling gave the company a tentative approval to sell $2 million in assets in order to continue operating under Chapter 11.
This gives the company more wiggle room to come up with a plan to avoid liquidation.
But its future remains unknown.
A LOCAL FAVORITE
According to its website, at least one Sticky’s location is still active in Paramus, NJ.
The restaurant is known for gourmet chicken as well as homemade sauces and drinks.
One Yelp user who visited a New York City location posted: “Scratches the chicken nugget itch.”
A customer on Tripadvisor posted: “Amazing chicken, the chipotle aioli sauce is top tier, I miss it being close to home so much.”
Planting its roots in New York City, the company said its mission was to stand out as a chicken finger destination in the Big Apple.
“Sticky’s was created out of a love for chicken fingers and the desire to think outside of the box,” the company said on its website.
“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.”
Sticky’s financial woes come as other local staples and even major chains struggle to stay afloat.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
The Mark Wahlberg-owned Wahlburgers has closed down nearly 80 locations.
Jack In the Box, Applebee’s & Denny’s are also closing doors throughout the nation.
The closures come at a time restaurants face major challenges like changing consumer spending habits and an uncertain economy.
