A beloved New York City-born cookie shop has abruptly announced the closure of all its locations, just one day after teasing customers to ‘set their alarms’ for a new fall flavor.
Chip City, the viral bakery chain with over 22 locations in Manhattan, New Jersey and Texas, announced Friday that it had officially closed every remaining store.
‘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,’ the company wrote in an Instagram post.
‘We are grateful to our dedicated employees and loyal customers who have supported us for the past 10 years,’ it added.
Just a day earlier, Chip City had unveiled its new Crisp Apple Fritter flavor, made with a cinnamon-spiced sugar cookie, glazed donut pieces, apple pie filling and vanilla icing.
A video shared by the company showed a freshly baked cookie piled high with apple filling and finished with a zigzag drizzle of icing before being slowly broken in half, revealing its gooey center.
‘Sorry to the local apple orchard, but the best pick of the season isn’t coming from a tree,’ the caption read.
‘Set your alarms for Friday, October 2nd! Head to your local Chip City or order online before they’re gone!’
Chip City, a beloved New York City-born cookie shop, abruptly announced the closure of all its locations
The viral bakery chain, which had more than 24 locations across Manhattan, New Jersey and Texas, announced the closures Friday, blaming ‘significant macroeconomic headwinds’
Employees have since spoken out about an email they received from company president Nicolas Baizan, who informed them that all 22 remaining stores would close immediately.
In the message, he blamed the closures on a ‘challenging environment’ in which customers were ‘spending less’ as their preferences evolved, negatively impacting sales.
‘I have some difficult news about Chip City’s future. After almost 10 years of passionately serving our loyal customers, we have decided to cease all store operations,’ Baizan wrote.
‘This means our 22 remaining stores will permanently close at close of business today,’ it added. ‘I am sorry to share that today will be your last day as a Chip City employee.’
Baizan, who was named president only 10 weeks ago, ended the email by explaining that the company had made ‘extensive efforts’ over the past year to address its challenges, including working with its board and investors.
‘Unfortunately, we no longer have the funding required to operate this business,’ he said.
The shock closure sparked a wave of confusion and anger online, as customers accused the company of betraying its employees and speculated about what had really happened behind the scenes.
In one Reddit thread, a user wrote: ‘They were supposed to cater my wedding favors in a month. Cool.’
Just a day earlier, Chip City had unveiled its new Crisp Apple Fritter flavor, made with a cinnamon-spiced sugar cookie, glazed donut pieces, apple pie filling and vanilla icing
Employees have since spoken out about an email they received from company president Nicholas Baizan (pictured), informing them that they were no longer employed by Chip City
‘Yep! I got hired like a month ago, been in limbo trying to reach an actual manager about getting scheduled, went in YESTERDAY and finally got some clarity about starting training next week…. then i get the email,’ another said.
A third wrote: ‘I worked for chip for about 2 years in their earlier years, and the horror stories I have from this place are endless.’
‘That’s an incredibly shi**y thing to do to their employees,’ another added.
But it has since been revealed that the sudden announcement came just days after Chip City was sued by co-founder and former CEO Peter Phillips, according to Restaurant Business.
The motion, filed on September 28, accused three defendants, Chip City, investor Enlightened Hospitality Investments and Baizan, of ‘bad-faith self-dealing.’
It further accused the trio of breaching a contract, wage theft, unlawful retaliation and other violations stemming from a corporate restructuring on March 2, 2026, according to a complaint obtained by People.
Phillips claimed that his agreement to step down as CEO guaranteed him $157,500 in prorated salary, along with continued health insurance coverage, during the transition period.
To receive his pay, the former CEO alleged that Chip City required him to surrender four web domains he had personally registered, which he described as ‘valuable’ in the lawsuit.
It has since been revealed that the sudden announcement came just days after Chip City was sued by co-founder and former CEO Peter Phillips, according to Restaurant Business
By 2024, Chip City had expanded to 45 company-owned locations and generated more than $35 million in system sales the following year
He also claimed that the company wanted him to hand over signed documents related to five Small Business Administration-backed loans totaling more than $640,000, for which he was allegedly a guarantor.
Phillips said the company threatened him with more than $900,000 in counterclaims, which he called ‘manufactured,’ according to the court documents.
He alleged that the defendants eventually ‘executed their threat’ when they cut off his direct-deposit payroll on September 18, 2026.
In the filing, Phillips alleged that Chip City retaliated against his September 21 notice of ‘material breach and wage demand’ by ending his employment status and seeking to revoke his family’s health insurance.
He also accused the company of violating the Employee Retirement Income Security Act and its fiduciary obligations, according to People.
By 2024, Chip City had expanded to 45 company-owned locations and generated more than $35 million in system sales the following year, according to Technomic, a sibling company of Nation’s Restaurant News.
The chain had since been shrinking, closing stores throughout 2026 and leaving fewer than half of its 45 locations when Baizan announced the abrupt shutdown.
