
In a large bowl, season the chicken pieces with salt and pepper. Dredge lightly in flour, shaking off any excess.
In a large, heavy-bottomed pot or Dutch oven, cook the bacon over medium heat until crisp. Remove the bacon and set aside, reserving the bacon fat in the pot.
Add the chicken to the pot in batches, browning on all sides. Remove the chicken and set aside.
Add the onions and mushrooms to the pot and cook until softened, about 5-7 minutes. Stir in the garlic and cook for another minute until fragrant.
Pour in the red wine and chicken broth, scraping up any browned bits from the bottom of the pot. Bring to a simmer.
Return the chicken and bacon to the pot. Add the thyme and bay leaf. Cover and simmer for 30-40 minutes, or until the chicken is cooked through.
Remove the chicken from the pot and set aside. Increase the heat to medium-high and simmer the sauce until it has thickened slightly, about 10-15 minutes. Season with salt and pepper to taste.
Return the chicken to the pot and heat through. Garnish with fresh parsley before serving.