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One minute, Chip City was hyping an apple fritter cookie. The next, the whole operation had crumbled.
The Astoria-born bakery chain known for oversized, gooey cookies abruptly closed all 22 of its remaining locations last week, ending a run that took it from a single Queens storefront to a multistate chain. And despite the suddenness of the announcement, this appears to be a permanent goodbye.
According to Gothamist, company president Nicolas Baizan told employees in an October 1 email that every location would close permanently at the end of that business day. A public announcement followed on Friday, October 2, on the company’s website and social media.
“Unfortunately, we no longer have the funding required to operate this business,” Baizan reportedly wrote in the employee email.
He cited declining consumer spending and changing preferences as factors affecting sales, saying the company had worked with its board and investors throughout the year to address those challenges. Employees would be paid through October 18, according to the email.
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The timing made the shutdown especially jarring. On Thursday, Chip City’s Instagram account still encouraged customers to visit the following day for a seasonal Crisp Apple Fritter Cookie, complete with glazed doughnut pieces, apple pie filling and vanilla icing. Customers also told Gothamist they had recently received promotional texts.
Founded in 2017 by childhood friends Peter Phillips and Teddy Gailas, Chip City built its following around hefty cookies and a rotating menu spanning more than 180 flavors. In 2022, Enlightened Hospitality Investments, the growth equity firm linked to restaurateur Danny Meyer, invested $10 million to fuel its expansion.
As recently as July, the company reported 39 locations across six states and announced Baizan’s promotion with talk of its “next phase of growth.” By Thursday’s employee email, that footprint had shrunk to 22.
The closure also came days after Phillips, the former CEO, filed a lawsuit on September 28 alleging that Chip City had failed to pay severance owed after he stepped down in March. The suit also names the investment firm and company executives. That dispute is separate from the company’s stated explanation for closing; the supplied reporting does not establish that it caused the shutdown.
So, is there a comeback baking? Baizan said the company was “still sorting out next steps,” but employees were explicitly told the closures were permanent. For now, New Yorkers will have to find their oversized-cookie fix elsewhere.