Chip City to close all remaining 22 locations

Chip City, the viral cookie chain, is shutting down all of its remaining 22 locations. The decision was communicated to employees by company president Nicolas Baizan, who cited a challenging consumer environment and evolving spending preferences as primary reasons for the cessation of operations.

The shutdown follows a legal battle between the company and its co-founder and former CEO, Peter Phillips. Phillips filed a lawsuit alleging unpaid salary and disputes regarding web domains. The company had previously undergone recapitalization in March, with Danny Meyer’s Enlightened Hospitality Investments taking a majority stake for $4 million, reducing Phillips’ ownership to 5%.

While the company’s website previously listed locations in New York, New Jersey, and Texas, the total closure affects all remaining stores. Specific regional closures have already been noted in Connecticut and Virginia.