NYC Chicken Chain Should Liquidate, US Bankruptcy Watchdog Says

New York City-based fried chicken spot Sticky’s Finger Joint should convert its Chapter 11 bankruptcy to a Chapter 7 liquidation, the Justice Department’s bankruptcy unit said.

Shifting Sticky’s Holdings LLC’s case to a trustee-supervised liquidation process is in the best interest of creditors, US Trustee Andrew R. Vara said in a Monday motion submitted in the US Bankruptcy Court for the District of Delaware. The US Trustee cited Sticky’s “substantial and/or continuing loss to, or diminution” of value to its estates as the cause for his motion.

“Simply put, the Debtors’ assets continue to lose value, to the detriment of ...