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Viral cookie shop Chip City abruptly closes all locations
On Thursday evening, Chip City permanently shuttered all 22 remaining locations after Nicolas Baizan informed staff via email the company could no longer operate.
Driven by $10 million from Danny Meyer's Enlightened Hospitality Investments in 2022, the chain expanded from its Astoria origin before recently scaling down amid declining sales.
Earlier this week, CEO Peter Phillips sued Chip City alleging breach of contract and wage theft, while staff reported noticing "red flags" with the company's supply chain.
Police reported that unidentified individuals broke into a Manhattan location early Friday morning to remove cash, compounding difficulties for employees who received minimal closure notice.
Chip City faces potential liability under the New York State Worker Adjustment and Retraining Notification Act, which requires 90-day notice for mass layoffs and mandates up to 60 days back pay.