Chip Metropolis closes for good, because the Queens-born cookie chain shut its 22 remaining shops on the shut of enterprise on Thursday, Oct. 1, 2026, and blamed falling gross sales and an absence of funding. Chip Metropolis closes all shops solely days after co-founder Peter Phillips sued the corporate, and the Chip Metropolis authorized dispute covers unpaid severance and likewise firm spending. The Chip Metropolis retailer closures hit each store that was nonetheless open, a far cry from Chip Metropolis’s 45 shops at its peak.
Chip Metropolis Retailer Closures, Authorized Dispute And Monetary Bother
Phillips and Teddy Gailas opened the primary store in Astoria in 2017, and Enlightened Hospitality Investments later put $17.5 million into the chain. Chip Metropolis’s 45 shops as soon as unfold nationwide, the Queens Day by day Eagle reported, however the rely was right down to 39 by July. Proper now, Chip Metropolis closes the guide on all of it.
Inside The E-mail To Staff
Chip Metropolis closes out its run with one e mail from president Nicolas Baizan, despatched to employees on Oct. 1.
Nicolas Baizan mentioned this within the e mail to workers:
“After virtually 10 years of passionately serving our loyal prospects, now we have determined to stop all retailer operations. This implies our 22 remaining shops will completely shut at shut of enterprise right this moment. I’m sorry to share that right this moment might be your final day as a Chip Metropolis worker.”
The corporate had this to say in a Friday assertion:
“Regardless of in depth efforts to stabilize our enterprise within the face of great macro-economic headwinds, now we have made the very troublesome choice to shut all of our Chip Metropolis places.”
The Chip Metropolis retailer closures caught employees off guard.
Founder Peter Phillips Sues The Firm
Chip Metropolis closes all shops, however the case Phillips filed on Sept. 28 continues to be alive. The go well with, which additionally names Baizan and former interim CEO Fred LeFranc, says the corporate agreed in March to pay him $157,500 and likewise cowl his household’s medical insurance by means of year-end.
His pay stopped on Sept. 18, the go well with says, till he handed over 4 internet domains and signed paperwork for over $640,000 in SBA loans he assured. That demand sits on the coronary heart of the Chip Metropolis authorized dispute.
Questions Over Lacking Funds
The cash questions return to Might, when LeFranc flagged roughly $110,000 that went to 2 different Phillips companies and about $280,900 that went to former CFO Dion Vangelatos’ private account. The letter didn’t accuse Phillips of wrongdoing, and he pointed to his severance launch.
Peter Phillips mentioned this in his response to Chip Metropolis:
“The Firm explicitly agreed that this launch covers all claims, whether or not identified or unknown. Moreover, the Firm represented at closing that it was not conscious of any information or circumstances that will justify the initiation of any declare in opposition to me. As a result of the expenditures referenced in your letter occurred previous to the March 2, 2026 time limit, the Firm has already legally discharged its proper to demand restitution for them.”
Chip Metropolis closes with these questions nonetheless hanging, and on the time of writing, the Chip Metropolis authorized dispute is much from settled. The shop closures additionally depart employees with pay reportedly operating solely by means of Oct. 18. Again when Chip Metropolis’s 45 shops stretched nationwide, few would have guessed that Chip Metropolis closes all shops with only one e mail.
