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Chip City closes all locations after years of rapid expansion
Fox Business • • business
Key Points:
- Chip City, a New York-born cookie chain that grew rapidly with investment from Enlightened Hospitality Investments, has closed all of its nationwide locations due to significant macroeconomic challenges.
- Founded in 2017 by Peter Phillips and Teddy Gailas, the company expanded from a single store in Queens to 39 locations across multiple states, known for its oversized cookies and rotating menu of over 180 flavors.
- Despite a $10 million investment in 2022 aimed at accelerating growth, Chip City struggled financially and announced the closure after attempting to stabilize the business.
- The closure coincides with a legal dispute involving co-founder and former CEO Peter Phillips, who alleges unpaid compensation and benefits following his departure in March; the lawsuit names the company and key executives as defendants.
- Chip City's social media continued promoting products shortly before the shutdown, and company representatives have not yet responded to requests for comment.
