There are an abundance of fried chicken chains across the United States, and one based in New York and New Jersey is struggling to keep its doors open. Sticky’s — formerly known as Sticky’s Chicken Joint — was one of over a dozen chain restaurants to file for bankruptcy in 2024. It had 10 remaining locations in the two states but shuttered three restaurants, as well as a ghost kitchen, in the past year. Then, in February, all of the remaining restaurants closed. But a recent U.S. Bankruptcy Court ruling may turn all of that around.
A deal was struck in court to allow the chain to sell its assets to Harker Palmer, a private investment firm. The $2 million settlement is expected to prevent Sticky’s from moving from Chapter 11 bankruptcy into Chapter 7, and to allow it to resume operations. However, the restaurant will still need to seek approval for a new Chapter 11 bankruptcy plan.
Sticky’s has faced various legal issues over the years
Known since 2011 primarily for its chicken finger-based sandwiches — which can be ordered on buns or in a wrap with a variety of toppings and mouthwatering sauces (including a Mac Sauce and a Buffalo Balsamic Maple) — Sticky’s cited multiple reasons for its bankruptcy, including an increase in the price of chicken. It also pointed to New York City’s congestion pricing program, which started on January 25, 2025, and charges drivers south of 60th Street a toll of $9.
In addition, Sticky’s got itself into hot water for vacating its New York City headquarters early, in violation of its lease agreement. It also found itself the target of a lawsuit by another restaurant with a similar name. Even further back, in 2020, the chain faced legal issues when its founder, Paul Abrahamian, sued the other owners for $25 million for mismanagement of the company, among other allegations.
