Spirit Airlines is pulling out of two major cities and slashing dozens of routes as it works to cut costs and simplify its operations amid financial woes.

On Oct. 31, the budget carrier will end service from Minneapolis-St. Paul International Airport (MSP) and Hartford’s Bradley International Airport (BDL), executives revealed Friday in a note to staff viewed by TPG.

And, starting in November the airline will suspend service on around 40 routes — about a quarter of its network.

Those cuts that had been expected after the company in August entered chapter 11 bankruptcy restructuring for the second time in less than a year, and faced an immediate need to cut costs as concerns swirl about its financial outlook.

“While we previously reduced our presence at these airports, these decisions were still difficult, and we are incredibly grateful for our team members and partners at both stations,” Spirit Chief Commercial Officer Rana Ghosh wrote to employees Friday.

FAQ: Spirit Airlines’ bankruptcy and how it might affect your travel

Spirit currently operates in Hartford with nonstop service this fall to Detroit, Myrtle Beach, Nashville and Fort Lauderdale.

The carrier has a smaller network out of MSP, where it flies to Detroit and Atlanta.

The airline did not immediately share the full list of routes it planned to trim from its schedule in November.

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But those cutbacks come after the airline already axed close to a dozen flights earlier this fall, before warning more cutbacks would be coming.

They also come just days afte the airline revealed it would furlough about a third of its flight attendants, reports said.

In a possible silver lining, Ghosh on Friday told the company that the carrier did not expect exit any additional airports in the near future.

It’s been a tumultuous year for Spirit, with two bankruptcy filings, significant debt and mounting concerns about the ultra-low-cost carrier’s future.

Competitors have taken notice of the airline’s shrinking flying schedule.

United Airlines and top budget competitor Frontier Airlines have both added a host of routes this month currently served by Spirit.

And, JetBlue has significantly grown its footprint at Spirit’s Fort Lauderdale-Hollywood International Airport (FLL) home base, citing suddenly-available gate space at the busy South Florida airport.

Even prior to the cuts outlined Friday, Spirit’s total number of flights during the fourth quarter of 2025 were set to be down by more than 20% over last year, according to data from aviation analytics firm Cirium.

In Friday’s note to staff, executives cited “necessary changes” the company had made to “best position our airline for the future.”

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Spirit Airlines will end service to 11 cities in October as it begins the hard work of overhauling its route map in bankruptcy.

The Dania Beach, Fla.-based airline will end service to the following cities during the week of Oct. 2, 2025, a spokesperson confirmed:

• Albuquerque International Sunport (ABQ) in New Mexico
• Birmingham-Shuttlesworth International Airport (BHM) in Alabama
• Boise Airport (BOI)
• Chattanooga Metropolitan Airport (CHA) in Tennessee
• Columbia Metropolitan Airport (CAE) in South Carolina
• Oakland San Francisco Bay Airport (OAK)
• Portland International Airport (PDX) in Oregon
• Sacramento International Airport (SMF)
• Salt Lake City International Airport (SLC)
• San Diego International Airport (SAN)
• San Jose Mineta International Airport (SJC) in California

Spirit also suspended plans to add Middle Georgia Regional Airport (MCN) in Macon, Georgia, to its map on Oct. 16.

The cuts come days after Spirit filed for its second Chapter 11 bankruptcy restructuring in less than a year. The airline plans to shed planes, shrink its network and cut costs in the hopes of returning to profitability.

“Spirit is redesigning its network to focus its flying on key markets to provide more destinations, frequencies and enhanced connectivity in certain of its focus cities, while simultaneously reducing its presence in certain other cities,” Fred Cromer, chief financial officer of Spirit, said in a statement filed with the court on Sunday.

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Robert Milton, chairman of Spirit’s board of directors, told The Wall Street Journal that the carrier plans to refocus its map on key airports, including Fort Lauderdale-Hollywood International Airport (FLL), Detroit Metropolitan Wayne County Airport (DTW) and Orlando International Airport (MCO).

The 12 airports cut from Spirit’s map in October represent 3.9% of the airline’s total seats that month, schedule data from aviation analytics firm Cirium shows.

Las Vegas’ Harry Reid International Airport (LAS) will lose the most routes with the cuts, saying goodbye to eight nonstops, schedules show. FLL will lose four routes.

Many industry analysts expect further cuts at Spirit as it “significantly,” as Cromer put it, shrinks its fleet.

The airline operated 214 Airbus A320-family aircraft when it filed for bankruptcy on Aug. 28. However, only around 157 planes are in service, Cromer said.

Passengers booked on a canceled flight would be entitled to a refund under U.S. Department of Transportation policy.

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When a retailer has filed for Chapter 11 bankruptcy but intends to close some stores while keeping other open, it creates a challenging operating environment. It’s important, at least at the locations that aren’t closing, to look like nothing is wrong.

Nobody will place an order and put down a deposit on a piece of furniture or some other expensive item if they don’t believe the store will actually make that delivery. At normal price, consumers won’t risk having their orders sitting in warehouses because they paid for delivery, but the company did not pay the delivery bill.

Related: Costco made a major payment/credit change members love

That dual existence is happening right now with At Home. The retailer has filed for Chapter 11 bankruptcy, but it does plan to close 29 of its 229 stores across 39 U.S. states as part of the bankruptcy process. 

In stores that are not closing, and on the company’s website, there’s no mention that anything might be wrong. The chain greets people with an upbeat message that does not mention that a wrong turn in the Chapter 11 bankruptcy proceedings could force a broader, or even a complete, shutdown.

“For over 46 years, At Home has been a trusted destination for stylish, approachable design — offering everything a decorator may need to transform their space into a true reflection of who they are, how they want to live, and the memories they aim to create at home. Discover everything for every room, from Furniture, Rugs and Décor to Bedding, Bath, Outdoor and more. Explore curated collections, incredible seasonal selections and unique pieces that show off your signature style. Design your life At Home.”

For the 29 locations slated to close, however, the message is very different. 

“All sales are final,” “no returns accepted,” and other similar language fills those locations.

At Home closing roughly 10% of its stores

After filing for Chapter 11 bankruptcy on June 16, At Home will close 29 “underperforming” stores by Sept. 30. Some may close sooner if they run out of merchandise. 

All fixtures are being sold as well.

At Home has taken significant steps to survive its Chapter 11 bankruptcy. It shared in a press release:

“The company has entered into a Restructuring Support Agreement (RSA) with lenders holding more than 95% of the Company’s debt that sets forth terms of a prearranged financial restructuring that will eliminate substantially all of the company’s nearly $2 billion in funded debt and provide a capital infusion of $200 million to support the Company through its restructuring process and beyond.” 

New CEO Brad Weston also revealed some of the steps the company has already taken.

“Over the past several months, we’ve taken deliberate steps to strengthen the foundation of our business — sharpening our focus, elevating our customer value proposition, and driving operational discipline. These efforts are aimed at delivering sustained sales growth, optimizing our inventory management, improving efficiency, and enhancing overall profitability,” he shared in the press release.

Closing stores is an unfortunate, but necessary part of that project.

These are the 29 closing At Home locations:

• 6135 Junction Boulevard in Rego Park, New York
• 300 Baychester Ave. in Bronx, New York
• 750 Newhall Drive in San Jose, California
• 2505 El Camino Real in Tustin, California
• 14585 Biscayne Boulevard in North Miami, Florida
• 2200 Harbor Boulevard in Costa Mesa, California
• 3795 E. Foothills Boulevard in Pasadena, California
• 1982 E. 20th St. in Chico, California
• 2820 Highway 63 South in Rochester, Minnesota
• 26532 Towne Center Drive Suites A-B in Foothill Ranch, California
• 1001 E. Sunset Drive in Bellingham, Washington
• 8320 Delta Shores Circle South in Sacramento, California
• 1361 NJ-35 in Middletown Township, New Jersey
• 2900 N. Bellflower Boulevard in Long Beach, California
• 720 Clairton Boulevard in Pittsburgh, Pennsylvania
• 2530 Rudkin Road in Yakima, Washington
• 571 Boston Turnpike in Shrewsbury, Massachusetts
• 5203 W. War Memorial Drive in Peoria, Illinois
• 8300 Sudley Road in Manassas, Virginia
• 461 Route 10 East in Ledgewood, New Jersey
• 301 Nassau Park Boulevard in Princeton, New Jersey
• 300 Providence Highway in Dedham, Massachusetts
• 905 S 24th St. West in Billings, Montana
• 19460 Compass Creek Parkway in Leesburg, Virginia
• 3201 N. Mayfair Road in Wauwatosa, Wisconsin
• 13180 S. Cicero Ave. in Crestwood, Illinois
• 5101 Fashion Drive in Nanuet, New York
• 2100 S. Randall Road in Geneva, Illinois
• 2201 Zeier Road in Madison, Wisconsin

Source: Court filing

“Macroeconomic issues, including a rapid and dramatic rise in interest rates, persistent inflation, and concerns over unsustainable customs costs resulting from increased tariffs all placed significant pressure on the debtors’ revenue and cost structure,” At Home said in a court filing. “Retailers specifically contend with reduced foot traffic in stores, heightened competition from comparable and off-price retailers offering substantial discounts, and a disparity between inventory and customer demand” as the reasons for the closures. 

Fewer homes are being bought

High interest rates have led to a slowdown in home purchases.

“For the first time in years, home prices are failing to keep pace with broader inflation,” Nicholas Godec, head of fixed-income tradables and commodities at S&P Dow Jones Indices, said in a statement to Marketwatch.

Even though housing prices are flat or down, demand has been weak.

“National house prices have effectively gone sideways so far this year. This means house prices are falling in about half the nation’s housing markets, mostly in the South and western U.S.,” Mark Zandi, chief economist at Moody’s Analytics, told MarketWatch.

“This reflects extraordinarily weak housing demand and a modest increase in existing and new housing supply,” he added. Hence, he said, “Housing will be an increasing headwind to broader economic growth.” 

At Home store closure policies 2025

• Discounts Up to 30%: All merchandise, fixtures, and store equipment are being sold at discounts up to 30% until all inventory is cleared.
• Final Sales: All sales are final on purchases made on or after August 1, 2025.
• Gift Cards and Rewards: Gift cards, gift certificates, loyalty, and credit card rewards are no longer being accepted at closing stores, but can be used at other stores or online.
• Store Fixtures and Equipment: Store fixtures and equipment are also for sale during the liquidation process.
• Store Operations: Closing stores will remain open during their normal operating hours until closure.

Source: Press release

Related: Popular Technology Retailer Closing Dozens of Stores

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Spirit Airlines will keep flying after filing for Chapter 11 bankruptcy restructuring on Friday, just five months after exiting its last restructuring.

The Dania Beach, Florida-based budget airline said in a letter to flyers that it will continue flying, and that they can continue to use all “tickets, credits and loyalty points.” All other passenger benefits, including Savers Club and credit card perks, remain available for use as well.

“It has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” said Dave Davis, president and CEO of Spirit, in a statement Friday. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our Board of Directors decided that a court-supervised process is the best path forward to make the changes needed to ensure our long-term success.”

Spirit lost $186 million during the three-and-a-half months from mid-March, when it exited its last bankruptcy restructuring, through the end of June. That is normally a peak time for budget travel that includes spring break.

The airline warned investors on Aug. 11 that there was “substantial doubt as to the company’s ability to continue as a going concern within 12 months.”

Davis said Spirit plans to undergo a “comprehensive” restructuring this time. Its last bankruptcy filing in November 2024 focused primarily on the carrier’s debt.

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Spirit said in a statement that comprehensive restructuring would include a route map redesign centered on key focus cities, shrinking the airline’s fleet, and reducing costs.

The airline’s five largest destinations by flights in the third quarter, based on schedules from aviation analytics firm Cirium, are:

• Fort Lauderdale-Hollywood International Airport (FLL)
• Orlando International Airport (MCO)
• Harry Reid International Airport (LAS) in Las Vegas
• Detroit Wayne County Metropolitan Airport (DTW)
• Newark Liberty International Airport (EWR)
• Spirit’s schedule is more than a quarter smaller during the three months ending in September compared to the same period in 2024, Cirium data shows.

The carrier flew 215 Airbus A320-family planes at the end of June, its latest quarterly financial filing shows.

Other airlines are not waiting for Spirit to restructure or, in a worst-case scenario, fail. Frontier Airlines recently unveiled 20 new routes that include many in Spirit markets. And analysts believe other carriers, including JetBlue Airways, Sun Country Airlines and United Airlines, could be interested in Spirit’s gates and facilities at various airports like FLL and DTW.

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Known for its bright-yellow livery and status as one of the country’s most longstanding low-cost airlines, Spirit Airlines  (SAVE)  has in recent years run into financial difficulties that call into question its entire existence.

While the airline was able to emerge from the Chapter 11 protection it requested at the end of 2024 by converting $795 of debt into equity, Spirit is still struggling with quarterly losses and an inability to generate enough revenue to cover operational costs.

Related: JetBlue cuts flights to two airports, offers refunds

In a quarterly Securities and Exchange Commission filed on Aug. 12, Spirit Airlines leadership admitted that there is “substantial doubt as to the company’s ability to continue.” 

Although the airline had already taken numerous cost-cutting measures such as furloughing or demoting over 400 pilots, pushing out executives like former CEO Ted Christie, and cutting unprofitable routes, it ultimately failed to make a substantial dent in debts owed to creditors.

“We remain hard at work on many initiatives”: Spirit Airlines

The $245.8 million loss that Spirit posted in the second quarter of 2025 is, despite the cost-cutting and restructuring, still greater than the $192.9 million one reported at the same period in 2024. At the time of the first bankruptcy, Spirit had over $3.8 billion in total debts.

In a scoop reported by the Wall Street Journal, Spirit Airlines is now also exploring a second restructuring among other efforts to avoid having to close up shop and cease operations. 

It is also reportedly working with financial consulting firms FTI and Seabury Airline Group in figuring out how to go forward.

Related: After bankruptcy, Spirit Airlines is running out of time, money

Spirit, meanwhile, declined to comment on the speculation and instead said that it is working to improve its current finances. 

A separate regulatory filing shows that Spirit borrowed an additional $275 million under a revolving loan agreement and reworked its card-processing agreement with U.S. Bank to offer more protection in the event of another bankruptcy but in response limit how many card payments can be made a day.

“We remain hard at work on many initiatives to protect our business, valued team members, partners and guests,” an airline spokesperson said in a statement. “Our focus is on making the necessary changes to better position the company and build a stronger airline. Our guests can continue to book and travel with us with confidence.”

“The company has continued to be affected by adverse market conditions”: Spirit SEC filing

Additional cost-cutting efforts committed to by Spirit include trimming down its fleet and selling off airport gates it is not using. But as it does all that, the low-cost carrier also limits the number of flights it can run when increased traffic is the main way it can bring in more revenue.

It thus faces separate challenges of needing immediate liquidity to pay down debt and avoid defaulting, while also needing to plan for the long-term with flights and services that keep it competitive with other airlines serving similar markets.

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“The Company has continued to be affected by adverse market conditions, including elevated domestic capacity and continued weak demand for domestic leisure travel in the second quarter of 2025, resulting in a challenging pricing environment,” Spirit wrote further in the Aug. 12 filing.

(The Arena Group will earn a commission if you book a trip.)

Make a free appointment with TheStreet’s Travel Agent Partner, Postcard Travel, or email Amy Post at amypost@postcardtravelplanning.com or call or text her at 386-383-2472.

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Shortly before it filed for bankruptcy in November 2024, Spirit Airlines  (SAVE)  announced that it would put 330 of its pilots on furlough.

It had already furloughed 130 pilots a month earlier, while also downgrading 120 of its captains to first officers. 

At the time it filed for Chapter 11 bankruptcy protection, Spirit had accumulated over $3.8 billion in debt as earlier plans for acquisitions with JetBlue  (JBLU)  and Frontier Airways  (FRON)  had fallen through.

While Spirit emerged from bankruptcy by the spring by restructuring $795 million in funded debt and securing $350 million in fresh equity from investors, questions remain about how the carrier will find a profitable way forward.

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Spirit Airlines ‘taking necessary steps to ensure we operate as efficiently as possible’

As first reported by Bloomberg, Spirit Airlines confirmed that it will make a third round of pilot furloughs by placing 270 pilots on leave by Nov. 1. An additional 140 pilots will be downgraded from captain to first officer by Oct. 1.

Spirit confirmed the cuts as being necessary “to better align staffing with our flight schedule.” For the second quarter of 2025, Spirit reported revenue of $1.3 billion, which is a 11% drop from the previous year. The adjusted net loss was $158 million.

“We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,” the airline said in a further statement. The last time the airline reported a profitable quarter was in 2019, and it has faced increased pressure to do so post-bankruptcy.

Related: Spirit Airlines to launch its shortest flight yet

After emerging from bankruptcy, Spirit made additional changes like scrapping its base fare structure and replacing it with tiers in which customers pay for more perks. The four classes begin with a basic “Go” fare without a single carry-on, while the “Go Big” fare includes a carry-on item and checked bag, an assigned seat with extra legroom at the front of the plane, priority boarding, and extras such as snacks and free in-flight Wi-Fi.

In announcing the pilot furloughs, Spirit said that it is also preparing to restructure certain routes — namely, cut flights — to scrap ones that are not bringing in profit. The carrier has already cut approximately one million seats on different routes between May and June 2025.

‘Spirit continues to shrink’: Captain and union leader on new round of furloughs

The news predictably sent shockwaves through the employees affected as, after each round of previous cuts, Spirit had expressed hopes that no further ones would be made.

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• United Airlines places big bet on new flights to trendy destination
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“We know how hard this news hits, and there’s no dressing that up,” Ryan Muller, a captain who chairs the Spirit chapter of the ALPA pilot’s union, said in statement on behalf of the union’s members. “Spirit continues to shrink, and with it, the value of pilot seniority and Spirit careers continues to erode.”

In regard to the affected employees, Spirit issued an additional statement saying that it “recognize[s] the weight of this decision and are committed to treating all affected Team Members with compassion and respect during this process.”

Related: US government issues sudden warning about Thailand travel

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The U.S. drugstore retail sector is facing a major transformation with huge pharmacy retailers downsizing operations to cut costs and some filing for bankruptcy. 

America’s largest drugstore chains have closed hundreds of store locations over the last four years to reduce labor costs, eliminate above-market leases, plug leakage from theft, and shut down underperforming stores.

Some of the nation’s smaller pharmacy chains, facing similar financial distress, have been forced to file for bankruptcy protection to restructure debt.

Related: Popular pizza and beer chain files for Chapter 11 bankruptcy

Giant drugstore chain Rite Aid, however, filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores in a reorganization.

The pharmacy chain’s surviving entity, New Rite Aid LLC, filed for Chapter 11 protection a second time on May 5, 2025, and began closing all of its stores, estimated at about 1,240 locations at the time.

Rite Aid files bankruptcy notice to close the last of its stores

Rite Aid is approaching the end of its existence as it filed its 14th notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on July 25, seeking approval to close 17 more stores and liquidate their assets, which adds to previously designated locations for closing in its second bankruptcy, for a total of 1,237 stores.

The debtor has not indicated if any additional stores remain to be closed.

The retailer already filed its final location closing order on July 10.

Rite Aid’s 14th additional closing notice consists of store closures in five states, including Washington (11), New York (3), California (1) Oregon (1), and Pennsylvania (1).

Objections to the 14th closure notice are due by Aug. 4.

Rite Aid closures by state:

• California (348)
• Connecticut (15)
• Delaware (29)
• Idaho (7)
• Maryland (23)
• Massachusetts (4)
• New Hampshire (47)
• New Jersey (61)
• New York (178)
• Ohio (4)
• Oregon (36)
• Pennsylvania (352
• Vermont (5)
• Virginia (26)
• Washington (102)

Rite Aid on July 21 filed its 13th notice of additional store closing locations, seeking to shutter one location in Colonial Heights, Va.

Objections to the 13th notice are due by July 31. 

Rite Aid already filed 14 notices of store closing locations with the original notice and an additional closing notice on May 9, followed by additional closing notices on May 15, May 23, May 30, June 6, June 13, June 20, June 27, July 3, July 11, July 18, and July 21.

Related: Beloved beer brand files Chapter 11 bankruptcy

The first 14 groups of store closings listed 1,220 locations in 15 states, including Pennsylvania (351), California (347), New York (175), Washington (91), New Jersey (61), New Hampshire (47), Oregon (35) Delaware (29), Virginia (26), Maryland (23), Connecticut (15), Idaho (7), Vermont (5), Massachusetts (4), and Ohio (4). 

Another major drugstore chain, CVS, in 2021 started its downsizing campaign when it said it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024.

The company extended the downsizing campaign into 2025, revealing in its annual report in February that it would close 271 more stores this year.

Walgreens, which operates about 8,600 stores, evaluated 2,000 stores for potential closure and identified 1,200 locations to shutter over the next three years, with 500 set to close in fiscal year 2025.

Drugstore chain location closings:

• CVS: 1,171 store closings 2022-2025.
• Walgreens: 1,200 store closings 2025-2027.
• Rite Aid: 2,037 store closings 2023-2025.

Closing stores wouldn’t be enough for several smaller drugstore chains that have opted for Chapter 11 bankruptcy to reorganize their businesses.

Smaller pharmacy bankruptcy filings

Eastern Kentucky drugstore chain Rx Discount Pharmacy, with about seven pharmacy and healthcare businesses, on May 1, 2024, filed for Chapter 11 bankruptcy reorganization.

CL Cressler Inc., the owner of seven Medicine Shoppe Pharmacy stores located in Pennsylvania and New York, on Aug. 29, 2024, filed for Chapter 11 bankruptcy to reorganize its debts.

Finally, in Arkansas, drugstore chain Doctor’s Orders Pharmacy on July 21 filed for Chapter 11 bankruptcy, as its parent Whitehall Pharmacy LLC faced a breach of contract lawsuit.

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Wolfspeed (WOLF 105.93%) stock is seeing massive gains in Monday’s trading. The company’s share price is up 96.6% as of 1 p.m. ET despite the S&P 500 and Nasdaq Composite indexes being down 1% and 0.9%, respectively, at the same point.

Before the market opened this morning, the silicon-carbide specialist announced that it had named Gregor van Issum as its next chief financial officer. The news prompted the stock to rocket higher, and it was up as much as 122.2% before 1 p.m.

Image source: Getty Images.

Van Issum will be succeeding interim CFO Kevin Speirits and will step into the position on Sept. 1, at which point he’ll be helping to lead the company’s bankruptcy and financial restructuring proceedings. Wolfspeed stock tanked in May after it was reported that the company was preparing bankruptcy filings, and the business later confirmed it had filed petitions for reorganization under the Chapter 11 provision — but shares have now seen a substantial rebound.

Is Wolfspeed stock a buy right now?

Van Issum will bring more than two decades of experience in corporate restructuring and strategic financing to the CFO role at Wolfspeed, and today, investors are showing some hope that he’ll be able to guide a financial transition that will work out for current shareholders. On the other hand, Wolfspeed has a high level of debt, and current shareholders could still get wiped out as the new company issues shares to reset the balance sheet. While the stock could bound significantly above current levels, there’s also a high risk of investors losing a lot of their money.

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When a company catches public momentum, it can ride the wave as long as possible.

The problem, is that when that ride ends, the company needs to be prepared for the period when it’s not the hot brand. 

Related: Verizon announces wild new offer to win back angry customers

That has proven to be a challenge for a lot of companies. Retailers like True Religion flew high, had a moment in the sun, and the crashed hard. 

True Religion filed Chapter 11 bankruptcy and was bought by an investment firm giving it a new lease on life.

That’s not always the case and many brands don’t survive past their time of great prosperity.

There was a time, for example, when Blackberry was a must-have phone for every business leader. That company opened the door for Apple to establish the iPhone with that market by failing to add new features over multiple years.

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Other brands like TiVo, which once owned the digital video recorder (DVR) space still exist, but only as a fraction of what they once were.

Creating a hit product and building a company for long-term success are two very different things.

MWave rode the wave until it didn’t

Most Americans know MWave as a company the built custom gaming computers. There was a period where off-the-shelf computers lacked the power needed to play games like “Call of Duty.”

In these games, having a faster processor, a better audio card, and other edges gave you a better chance to be competitive. MWave was not the only company catering to these players, but it was one of the hottest names.

While the company still offered those services, it serves a different role in its home country. The company described its main purpose on its website. 

“Mwave.com.au is Australia’s leading online tech retailer, and is well-renowned amongst PC enthusiasts and the gaming community. With over 10 years of experience, Mwave has developed a strong reputation in its technical expertise, shopping convenience, and professional customer service,” it shared.

The company then went on to brag a bit.

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“Not only is Mwave a popular online destination for PC consumers, it is also highly regarded by businesses, big and small,” it added.

Now, MWave has been placed into administration, the Australian version of a Chapter 7 bankruptcy.

What happened to MWave

MWave’s website makes no mention of the company being placed into administration on its homepage. Instead, it still touts all the things the company does and makes reference to the custom PCs it made its name selling.

“Mwave provides high convenience with a wide range of computer & electronics products as well as high in-stock availability of the most popular products. Our Custom PC manufacturing with our Ready-2-Go (R2G) gaming systems suit unique or urgent customer requirements,” it shared.

The company also prided itself on serving all levels of customer expertise.

“At Mwave we are passionate about technology and enthusiasts at heart. As a specialised team of experts, we can assist you whether you are tech-savvy, a PC gamer, a business customer or a novice,” it added.

Antony Resnick and Henry Ho Leung Kwok of DVT Group in Parramatta NSW have been appointed to liquidate the company.

The company shared a note on its blog saying that a deal was made on June 16 for its assets.

“The digiDirect Group has acquired the Mwave business. We will continue to trade from our Lidcombe headquarters for the time-being before eventually transferring Mwave operations across to The digiDirect Group’s headquarters in South Strathfield in Sydney,” it shared.

Related: Huge home retailer filing Chapter 11 bankruptcy, closing stores

MWave plans to honor all gift cards and store credits. It’s also going to fulfill any orders which it has been paid for.

“We are committed to fulfilling all orders swiftly and efficiently, maintaining the place in pre-order and backorder queues of all customers. We anticipate there will be a maximum of 2-3 days delay on any current available shipments as we work through a stocktake and change over courier accounts to new ownership,” it added. 

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Chicken has become a major battleground in the fast-food space.

You have your dedicated chicken chains like KFC and Chick-fil-A, and there’s also Popeye’s, Zaxby’s, Raising Cane’s, and countless others devoted specifically to selling chicken. You also have McDonald’s, Burger King, and Wendy’s, which have all made chicken a major part of the menu.

Related: Popular Latin American chain files bankruptcy, closes restaurants

That makes it incredibly hard to break into the space. Maybe you can offer a better product, but does that difference matter when so many other chains, with so many locations, are your competition?

In some ways, fried chicken has become like craft beer. There are a lot of people who are very passionate about it that want to enter the space, but it’s nearly impossible to differentiate yourself.

Trying to market your chicken chain as superior to others seems like a really challenging prospect. That’s exactly what Sticky’s has boldly tried to do, using the marketing line “the best damn chicken finger you have ever tasted.”

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The company tried to justify that boast on its website.

“Sticky’s was created out of a love for chicken fingers and the desire to think outside of the box. Our founders realized that there were a lot of New Yorkers who really loved chicken fingers but didn’t have a great place to get them; and thus, Sticky’s was born! Our mission is to create the best damn experience through the comfort of chicken fingers in a fun, inclusive space,” it shared.

Sticky’s has filed Chapter 11 bankruptcy

While it opened with noble intentions (or at least lofty goals), Sticky’s was not able to deliver. The chain has been in Chapter 11 bankruptcy for almost a year. During its period of court protection, the company closed three locations and a ghost kitchen.

At the time of its filing with U.S. Bankruptcy Court for the District of Delaware, the company reported $500,000-$1 million in assets and $1 to $10 million in liabilities, with the largest creditor being distributor U.S. Foods.

It seemed in late April that the chain had found a lifeline.

More Food & Dining:

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“Sticky’s won a Delaware bankruptcy judge’s tentative permission Tuesday to sign a contract to sell its assets to an investment fund for $2 million after surging poultry prices and New York City’s congestion pricing program imperiled the company’s Chapter 11 turnaround plan,” Law360 reported on April 30.

That court order is now under scrutiny, which could lead to the company being liquidated.

Sticky’s faces a very uncertain future

Harker Palmer Investors LLC tried to defend its offer in a June 3 court filing in the U.S. Bankruptcy Court for the District of Delaware. The company sought to answer an objection from a Justice Department bankruptcy watchdog to the $2 million deal.

It argued that the U.S. Trustee’s legal arguments are “unsupported” and that no creditors — including landlords and supplier U.S. Foods — oppose the revised proposal,” Bloomberg Law first reported.

If the offer is not approved, Harker Palmer’s lawyers argued, the fried chicken chain will have to be liquidated.

“If the Modified Plan is not confirmed, conversion to Chapter 7 will follow, resulting in no recovery to any creditors,” the firm said in the filing. 

Chapter 7 would involve a trustee-supervised liquidation process.

Related: Subway owner makes major billion-dollar fast food acquisition

Sticky’s, which has also faced a lawsuit over its name, built a business on the idea that it offers higher-quality chicken fingers than its rivals.

“At Sticky’s we use the finest ingredients, including fresh, never-frozen, antibiotic-free chicken. We take great pride in what we do and what we serve. With a selection of over 18 sauces made in house, it is a labor of love. We believe this process is necessary to serve our customers ‘The Best Damn Chicken,’ it posted on its website.

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