"As you'll see from reading through the list below, issues like COVID-19 closures, a cost-of-living crisis, and rising labor costs have left many once-popular restaurant chains with little option but to file for either Chapter 11 or Chapter 7 bankruptcy. The former allows companies to continue operating, with a chance to restructure and save the business, while the latter usually involves shuttering completely in a bid to pay off debts."
"In March 2025, Sticky Fingers filed for Chapter 11 bankruptcy protection in an attempt to save the barbecue chain from closing its doors for good. It wasn't a major surprise for customers, many of whom agreed that the food just wasn't as good anymore, and the overall quality was lacking. Things had been difficult for a while at the barbecue chain, which was founded back in the early 1990s by three South Carolina entrepreneurs who had been friends since seventh grade."
More than 70 major public and private companies filed for bankruptcy in July 2025, the highest monthly total since 2020 per S&P Global. Financial distress affected multiple industries, including healthcare, food distribution, clothing retail, and notably restaurants. Pandemic-era closures, a cost-of-living crisis, and rising labor costs pressured many restaurant chains. Some operators pursued Chapter 11 to restructure and continue operating, while others filed Chapter 7 and closed permanently. Sticky Fingers, a barbecue chain founded in the early 1990s that expanded to about 15 locations, sought Chapter 11 protection in March 2025 after prolonged quality declines and financial strain.
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