If you’re familiar with this New York fried chicken chain, there is a chance that its days are numbered.
Sticky’s, a fried chicken chain based out of New York, is on the edge of filing for Chapter 7 bankruptcyif a proposed sale is not approved.
Here’s what you need to know about the sale and what the future holds for Sticky’s.
Is Sticky’s shutting down?
Sticky’s filed for Chapter 11 bankruptcy in April 2024, largely because the company has had financial troubles resulting from the pandemic.
Decreased foot traffic in New York City, where most of its restaurants were, resulted in fewer sales for the chicken joint.
While the Chapter 11 plan was a way to cut down on debts and move forward, the chain was still in financial ruin.
But an investor stepped forward with a $2 million cash offer, hoping to bring the company out of debt, according to Bloomberg.
However, the Justice Department’s bankruptcy watchdog claims that the investor, Harker Palmer, would have too much legal protection in the deal, threatening the proposed deal.
Harker Palmer warned that if the proposed sale did not go through, Sticky’s would be forced to file for Chapter 7 bankruptcy, according to a court filing from Bloomberg.
This means that the chicken chain would close all stores and liquidate its assets.
As of right now, the fate of Sticky’s is still up in the air.
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Katherine Rodriguez can be reached at krodriguez@njadvancemedia.com. Have a tip? Tell us at nj.com/tips.
