Sticky Fingers Restaurants, LLC filed for bankruptcy protection in federal court in South Carolina in early March which its attorney said will allow the firm to reorganize without adverse actions being taken by creditors.
“Sticky Fingers will continue, throughout the 15 month reorganization, to provide delicious food and excellent service as we do not expect that to change,” attorney Robert H. Cooper wrote in a statement.
The company owns the Greenville location at the prominent corner of Main and East Washington streets along with a location in Chattanooga, Tenn. Another firm runs the North Charleston and Summerville locations, which are not a part of these filings.
The Memphis-style ribs and barbecue chain got its start in the Lowcountry, with its first location in Mount Pleasant in 1992. Although it was started by a group of childhood friends, ownership has changed hands throughout the years.
Sticky Fingers Restaurants LLC said its finances and turnaround plan were upended by the COVID pandemic and inflation, prompting the filing in bankruptcy court.
The bankruptcy petition shows the 20 largest creditors with secured claims are owed more than $1.2 million. The biggest debt, totaling about $594,000, is from a pair of pandemic-era Paycheck Protection Program loans from the U.S. Small Business Administration.
Sticky Fingers Restaurants also owes about $21,000 to the city of Greenville in hospitality tax, $11,900 to Greenville County for property tax, as well as $41,000 to the Tennessee Department of Revenue for sales tax.
The debts to Greenville County and the city have only been standing for three to four months, Cooper said.
The firm owes more than $152,000 to its landlord, 1 South Main LLC, whose registered agent is Jonathan Good, CEO of NAI Earle Furman. A spokesperson for NAI Earle Furman declined to comment for this story, citing the active bankruptcy filings.
Court records from Greenville County show a rule to vacate notice was filed Feb. 24 by ASR 1 S Main Greenville, LLC against Sticky Fingers Restaurants, LLC.
The unit did not appear to be for lease or sale as of March 19 publication time.
By moving to restructure its finances through Chapter 11, an "automatic stay" is immediately invoked, blocking creditors from taking adverse actions against the company, Cooper said.
The Chapter 11 reorganization also means employees can retain their jobs, which might not happen with a bankruptcy “workout,” Cooper said. Major companies like Sears and Macy’s have filed for Chapter 11 reorganization before.
“Everything goes forward as usual, just under the supervision of the court,” Cooper said.
