Popular Cookie Chain Chip City Suddenly Closes All Locations

Chip City has closed all locations.

The cookie chain locations in New York, New Jersey, and Texas shared the news in an Instagram post on Friday, Oct. 2.

“Despite extensive efforts to stabilize our business in the face of significant macro-economic headwinds, we have made the very difficult decision to close all of our Chip City locations,” they wrote in a statement. 

“We are grateful to our dedicated employees and loyal customers who have supported us for the past 10 years,” it concluded. 

This news came as a shock to loyal customers, as they had posted about the new Crisp Apple Fritter Cookie just one day earlier.

The company shared a video of the new treat and wrote “Set your alarms for Friday, October 2nd! Head to your local Chip City or order online before they’re gone! 🚚💨,” in the caption.

Chip City closed several locations ahead of the most recent announcement. On Sept. 28, it shuttered all Connecticut locations, according to CT Insider. One day later, Sept. 29, the company shut down two shops in Virginia, according to ARLnow.

Chip City president Nicholas Baizan told employees that 22 other store locations would also come to an end on Thursday, Oct. 1, per Restaurant Business.

“We have decided to cease all store operations,” Baizan wrote in a message, according to the report. “This means our 22 remaining stores will permanently close at the close of business today.”

A few days earlier, on Sept. 28, co-founder and former CEO Peter Phillips filed a lawsuit against Chip City, investor Enlightened Hospitality Investments, and Baizan, alleging breach of contract, wage theft, unlawful retaliation and other claims stemming from a corporate restructuring on March 2, 2026, according to a complaint obtained by People.

In the complaint, Phillips alleged that the company threatened to stop his payroll unless he transferred personal web domains related to the company and signed third-party borrower authorization forms for five store-level Small Business Administration (SBA) loans totaling more than $640,000, for which he was allegedly a guarantor.

He added that the defendants “executed their threat” and that his payroll was frozen on Sept. 18, 2026. Phillips claims Chip City breached the statutory Employee Retirement Income Security Act (ERISA) and fiduciary obligations and engaged in “bad-faith self-dealing.”