Chip City Cookies Shuts Down All Locations Nationwide
Chip City Cookies has permanently closed all 22 of its remaining stores, ending operations after failing to secure funding.
Chip City Cookies has permanently closed all locations following a nationwide shutdown decision. The New York-based cookie chain shut down its 22 remaining stores on October 1, 2023. An employee confirmed the closure by phone around 9 a.m. That morning. The company previously operated 39 locations across six states as recently as June, but its footprint had already dwindled to 24 stores in New Jersey, New York, and Texas before the final shutdown. All store pages have been removed from the company website, with Google listings now marked 'permanently closed'.
Chip City closed three locations in Connecticut: 112 Heights Road in Darien, 1125 Post Road in Fairfield, and 67 Memorial Road in West Hartford. The brand also recently exited the Virginia market. Its Clarendon and Shirlington shops had opened in early 2024, and a Tysons location opened in August 2025. None of these Virginia addresses are now listed on the company's site, and tipsters confirm they are permanently closed.
Legal Action
Co-founder and former CEO Peter Phillips filed a lawsuit on September 28, 2023, against Chip City, its investment firm Enlightened Hospitality Investments, and executives Nicolas Baizan and Fred LeFranc. Phillips alleged he was paid until September 18, then terminated and had his benefits canceled after demanding payment. He claimed the defendants conditioned the restoration of his pay and benefits on him transferring four web domains and signing Small Business Administration loan documents. The lawsuit seeks unpaid compensation, damages, continued health coverage, and legal fees. This legal action is separate from the decision to close the stores.
Financial Timeline
The shutdown marks a stark reversal for the company. Chip City originated from a 250-square-foot storefront in Astoria, Queens, in 2017, founded by Peter Phillips and Teddy Gailas. It secured a $7.5 million Series B investment from Enlightened Hospitality Investments in May 2024, bringing its total investment to $17.5 million. At that time, the company promoted Nicolas Baizan to brand president and announced plans to grow to more than 50 locations nationwide. Chip City had built its identity around oversized cookies and a rotating menu, leveraging its app and social media for customer engagement. Company president Nicolas Baizan cited declining consumer spending and changing preferences as reasons for the closure.
MidnighTreats will honor Chip City gift cards through October 14.
