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Fast-casual chicken tender concept Sticky’s Finger Joint is seeking Chapter 11 bankruptcy protection. The restaurant cites the pandemic and inflation as the main reasons for its financial issues.

In a petition filed April 25 in United States Bankruptcy Court for the District of Delaware, the New York City-based chain said it aims to right-size its balance sheets and develop a reorganization plan that will better position the business for success.

Founded in 2012, Sticky’s has nine locations in New York and three in New Jersey. Chief Executive Officer Jamie Greer said in an affidavit of support that the company plans to continue operations and is seeking court approval to allow it to pay employees and maintain “certain customer programs.”

Sticky’s bills itself as “New York City’s finest gourmet chicken finger restaurant.” Between 2013 and 2023, sales grew from $500,000 to about $22 million, according to the court filing. However, menu price increases stemming from inflated chicken and potato costs had a negative impact.

Additionally, the company said its reliance on less profitable third-party delivery and shorter in-person work weeks in New York City’s office districts contributed to the financial challenges.

Sticky situation

Sticky’s has also faced legal issues that only added to its money woes.

In 2021, the company lost a lawsuit filed by the landlord of its former corporate headquarters in New York. As a result, it was ordered to pay $600,000 for violating the lease by leaving early. Then in 2022, South Carolina barbecue chain Sticky Fingers sued Sticky’s over trademark infringement.

In recent years, Sticky’s has attempted to drive growth through a few different strategies, including a ghost kitchen in Philadelphia and an unsuccessful franchise push.

After making its New Jersey debut five years ago in Paramus, the chain went on to add outposts in Hoboken, Bridgewater and Union.

At one point, Sticky’s had 16 locations operating across the metropolitan region. Since 2021, it has closed four units: two New York City restaurants, the Philadelphia ghost kitchen and the Bridgewater location.

According to Greer, cash flow has “steadily improved” for the chain, but it is still recovering from “the financial burdens and new business realities that resulted from COVID-19.”

In February, Sticky’s eased its short-term cash flow issues when it entered equity financing and converted notes worth around $2.4 million.

In its petition for relief, the company reported $500,000 to $1 million in assets and up to $10 million in liabilities. The largest creditor is distributor U.S. Foods, followed by real estate and law firms.

Greer wrote, “The Debtors look forward to working with their creditors, vendors and other parties in interest as they chart a path to restructuring their balance sheet, realizing their full economic potential for the future, and continuing to provide their customers with the delicious meals they desire for years to come.”

A media representative for Sticky’s did not immediately respond to a request for comment.