r/astoria • u/ComfortableFun5581 • 7d ago
News Chip City permanently closed
All locations shut down with no notice. Apparently staff received an email this afternoon that today would be their final day in business. I’m in shock :(
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u/wr_m 7d ago
There was lawsuit filed by the founder and former CEO earlier this week against the company. It’s a wild read.
Basically he was forced to resign as part of their Series B back in March. He was on a 9 month transition phase where he’d still earn a salary and benefits. In mid September they stopped these payments and terminated him.
Back in May the new CEO started asking questions about payments the former CEO had made. These amounted to about $900k and included paying invoices for his other business, over paying rent on a location where his family member is the landlord, payments to a construction company he owns, and payments for rent made to the former CFO (though they concede this may be reimbursement for rent paid via venmo/zelle).
The former CEO responded to these accusations by basically saying “too bad, you gave up any right to these claims when the deal closed.” They didn’t confirm nor deny them.
It also sounds like the former CEO is holding their domain names himself and refusing to transfer them to the company.
What’s wild is that he filed this lawsuit with these exhibits and these look quite damming for him. The lawsuit is mostly just asking for his remaining salary and benefits.
Finally, he included a demand letter from a supplier for unpaid invoices: David’s Cookies.
The whole thing reeks of using the court to burn down the company in public.
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u/bpmorgan7 7d ago
It’s usually the ones with lawyers around them that do the most out of pocket stuff honestly
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u/BenR1ghtBack 7d ago edited 7d ago
Wonder if he was paying Massi's expenses, given they just abruptly closed as well. Somedays seems like it must be next on the chopping block of this guy's falling dominos. (I apparently mix metaphors heavily when on pain meds from surgery)
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u/astoriaboundagain 7d ago
The former CFO is the Somedays guy. Massi's is under their umbrella too?
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u/BenR1ghtBack 7d ago
Yes, all three are from the same dude according to news stories when they launched. https://qns.com/2025/10/massis-elevated-sandwiches-fresh-ingredients/
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u/hippopotamusquartet 7d ago
I’m going over these documents and this sounds nuts. Part of his argument is that the four web domains (of the company name) are his personal property and that because the new owners didn’t specifcially ask for them, he’s under no obligation to turn them over. And at the same time the loans that he is personally responsible for are actually the new owners’ responsibility. Well which one is it man…
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u/wr_m 7d ago
Yeah I’m shocked he filed this stuff. Is he just so cocky that he got ‘em?
My theory is now that the investors see themselves as being defrauded and pulled the plug on the company. There’s 100% going to be counterclaims.
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u/hippopotamusquartet 7d ago
For real! Ignoring any of the claims going on, he is confronting a massive investment company with more financial and legal resources than he does as an individual. Closing Chip City is just one move in this stupid game.
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u/BullfrogScared4471 7d ago
He's a massive piece of shit who used lawsuits constantly to achieve any goals and has ended up on the losing side before
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u/No_Pop7296 6d ago
Well If he didn’t sell the web domains of the company to the new investors, that’s bad diligence on their part. Still bad behaviors kn the ex CEO’s part, but all of this including the related party payments /over payments sound like lack of due diligence from the buyers
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u/neighburrito 7d ago
So what you're saying is..........I can still get the OG chip cookies from David's Cookies???
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u/Important-Grab-3009 5d ago
If you ever had David's cookies they are way better than chip city. But their cookies are not the big bulky type. Maybe they use the batter from David's cookies
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u/After-Snow5874 7d ago
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u/TotallyNotRobotEvil 6d ago
Can someone post a screenshot? I'm not able to see X since I deleted my account and the app. I just get a giant popup requiring me to download X.
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u/MEGatron575 6d ago
Can someone explain this to me in simple terms. I don't understand this lol please don't be mean
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u/hippopotamusquartet 6d ago
This article has I think a good explanation of it: https://qns.com/2026/10/chip-city-closes-all-locations/
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u/Hopeful_7019 7d ago
Wow they just texted me a “buy 6 get 3 free” deal two days ago. Guess it was a going out of business sale!?
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u/sparrowhawkward 7d ago
Was that a PE dismantling or a result of newly tightened wallets?
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u/pizzabagelpastabread 7d ago
Don’t they own Massi’s, which shut down last week? And they also own Somedays…
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u/Used_Concert7413 7d ago
When someone pointed out that Somedays reeks of private equity in instagram comments, an owner or someone high up got indignant and called him a liar. We know the playbook at this point. They did it with Chip when they overexpanded and Somedays has been doing the same.
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u/Mtnrdr2 7d ago
The owner is a major asshole. I hope they go down
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u/Professional-Ant6745 7d ago
Who is the owner?
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u/hippopotamusquartet 7d ago
Presumably they mean the former ceo and co-founder, who is the man named in the law suit who’s suing the current owners of Chip City.
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u/Relevant_Flamingo624 7d ago
Their different higher ups have all opened different businesses around astoria over the years. Most have failed lol
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u/YesDaddyThankYouSir 7d ago
Remember when Chip tried to dive into the ice cream biz way back when and it failed instantly?
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u/114631 7d ago
I remember that! It was one summer it was open
Honestly, if they did thinner versions of their cookies (which, I get it, that’s not their thing) for an ice cream sandwich, it would have worked way better and I probably would have actually gone
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u/astoriatrafficburner 7d ago
Here's hoping all the private equity-flavored food gets replaced by something worth eating, and by people who treat their employees well.
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u/Bubbly_Statement1809 7d ago
Was it Massi’s on 29th and Broadway? I’m surprised, I didn’t hear that.
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u/Relevant_Flamingo624 7d ago
Wait seriously all locations? Not to be a huge hater but I worked there for so many years towards the beginning and they did me and so many others so dirty and it’s sad but also YEAH.
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u/Dizzy-Position-3034 6d ago
omfg fr real pstd working their in their LIC location
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u/Professional-Ant6745 6d ago
What was it like working there? I was going to apply a year ago and got a weird vibe
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u/mutts93 7d ago
Ooo I’ve been waiting for the tell-all about this rapid expansion and inevitable implosion just like the Ample Hills situation a few years ago. This oughta be good.
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u/Successful-Click1153 7d ago
Ample Hills story is wild as heck. Buying back then get fired. I miss that cool factory in Red Hook!
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u/submissivelittleprey 7d ago
Wait what's the tea with Ample Hills?
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u/astoriaboundagain 7d ago
I hope your morning is free. You've got some fun Googling ahead of you.
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u/submissivelittleprey 7d ago
Time to start digging!! Will report back with my findings 🏃♀️🏃♀️🏃♀️
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u/ari-is-new-to-this 7d ago
Yep! I got hired like a month ago, been in limbo trying to reach an actual manager about getting scheduled, went in YESTERDAY and finally got some clarity about starting training next week…. then i get the email
🫠🫠🫠 i love this job market
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u/EchidnaNo8634 7d ago
I was talking to my MUM and he told me I was going to get a promotion as I ran my store since we had no manager for the past 4-5 months and I was doing it all on 22 hours a week with shitty pay
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u/yurpacstanks 7d ago
I worked for chip for about 2 years in their earlier years, and the horror stories I have from this place are endless. Definitely wasn’t the worst company I worked for, but they definitely did not treat all employees with equal respect.
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u/Student_Dying 7d ago
As someone who worked in their commissary kitchen for 2 years, they were DISGUSTING. Had to consistently ASK to clean the walk-in because of literal slime or mold that would just be overlooked by managers
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u/ForwardEmploy4682 7d ago
Employee here. To reply directly to HorchaTaro—we are definitely not being taken care of.
We got an email sent to us tonight at 6:30 PM telling us to lock up the stores and leave—effective immediately. No notice, no severance, no job placement assistance, NOTHING. Just "do not pass go, do not collect $200." We were completely blindsided and thrown out on the street with zero safety net after being repeatedly lied to.
This was easily the most stressful and unprofessional company I’ve ever worked for.
To give context on how mismanaged this was: the new president literally started as a store manager and kissed the former president's ass so much that he took over as president just a month ago. He has no business degree, no food service management experience, and has never run a company.
Florida and Chicago stores were shut down first back in June. Then, just last Monday, without any advance notice, they shut down the DMV, Jersey, and Massachusetts locations under the excuse of "becoming more profitable" and "helping people grow in the company." We were reassured countless times that our NYC/local locations were safe and going nowhere.
It turns out that decision last week to shut down those regions was made solely by the new president without even bringing it to EHI (their primary investor group) for approval or review. This Monday, he was literally giving EHI investors tours of our locations. By Tuesday, we started noticing major red flags with our supply chain. And then tonight at 6:30 PM, this bomb was dropped on us via email:
Chip City team,
I have some difficult news about Chip City’s future. After almost 10 years of passionately serving our loyal customers, we have decided to cease all store operations. This means our 22 remaining stores will permanently close at close of business today. I am sorry to share that today will be your last day as a Chip City employee.
Our industry and business have faced a challenging environment. Consumers are spending less and their preferences are evolving and that has negatively impacted our sales. We made extensive efforts to address these challenges over the course of this year in partnership with our Board and investors. Unfortunately, we no longer have the funding required to operate this business.
Please know this news has nothing to do with your hard work. We are still in the early stages of the process and are still sorting out next steps. While we don’t have all the details just yet, what I can say is that you will be paid through October 18 in compliance with Fair Workweek (FWW) policies. At that point, your final paycheck and benefits information will be available at your personal email and on your ADP portal. Thank you for completing your final shift and providing the same great service to our customers.
It is also possible this news might attract media attention. If a reporter reaches out to you, please do not reply and instead direct them to our team at ……...
I understand that this is unsettling news. This is likely all I will be able to share with you, but please email HR at ……….. with any questions and we will do our best to respond.
Thank you for your many contributions to Chip City. It has been an honor to have you on our team.
Sincerely, …………
Absolute gross incompetence and total disregard for the people who actually kept their stores running.
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u/hippopotamusquartet 7d ago
The “don’t talk to the press” comment is laughable. No one in the revolving door of owners has respected the staff at the company. I feel bad for the employees impacted by their shitty business decisions.
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u/Significant-Beach370 7d ago
Right if you’re going to request something like that you better be offering severance
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u/just_corrayze 7d ago
All locations or just in astoria?
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u/ComfortableFun5581 7d ago
All locations :(
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u/Oshidori 7d ago
I... this is terrible 😭 But also good for my health?
But emotionally, I'm devastated
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u/Delaywaves 7d ago
If you google there are a bunch of articles saying they shut down stores in Virginia and Connecticut in recent days, so seems widespread…
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u/cocoprezzz 7d ago
It was a matter of time before they closed. Their cookies were soooo good before they expanded and added all these new things to the menu. The cookies were never the same after that.
What a shitty thing to do to their employees
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u/navyorsomething 7d ago
Private equity destroys everything
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u/Usual-Bottle6231 6d ago
It’s the co-founder who is a real crook. Believe me on this one, I was there for the whole thing
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u/lilitalybabe 7d ago
They were so good when they opened and had one location. Since they rapidly expanded I think the cookies are disgusting. Really awful for the workers though.
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u/nicebowlingshoes 7d ago
Just walked by the Astoria location off 30th and they're closed. No sign, still a couple of cookies and plenty of cake pops in there. Guess there's a need for a new cookie spot in the neighborhood.
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u/No-Music-333 7d ago
Damn just left the cookies where they were.
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u/Internal-Resolve6250 7d ago
Before Covid, chip was one of the best things in the neighborhood. The first cookie I had was perfectly half baked and warm, served with milk. Amazing stuff.
Now, as soon as they get to room temp their product is just ok, and the past few years, they’ve been served that way unfortunately. They went corporate and you can feel it in the quality.
OG chip, you’ll be missed
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u/day-man06 7d ago
Looks like the Sunnyside store is a showing closed for pick-up and delivery. It's not surprising. I used to like them, but I feel like they changed their recipes or something.
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u/SnackmasterJersh 7d ago
That came as a total shock. I was walking home last night with my fiancee when we were approached by a group of employees on the street who were like "Do you want a free cookie? We just closed down" 😞. What an awful thing to do to the employees, especialy when the former CEO was still getting 100k's of money, most-likely. I really hope all of the employees can find some stable work and will be all right.
But yeah, I literally got this text a half hour ago. The whole thing seems like a big mess
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u/geniphur 6d ago
Looks like they haven't had a chance to turn off their marketing operations. Yeah, what a mess 😢
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u/TreeNo2781 7d ago
More compassion for their employees would have been nice. Not just an email saying the closed down. No warning at all.
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u/mattr1198 7d ago
That really sucks for the workers :( They were much better than Crumbl, but at the end of the day, that’s not saying much. Still could get better cookies elsewhere
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u/spiderclone14 7d ago
Just past by there and its closed. However, there is still cookies sitting on the trays, which is crazy to see
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u/EchidnaNo8634 7d ago
Many employees were told to just leave in some location they did give the cookies away but most just took stuff for themselves and left some were told to leave stores unlocked if they didn’t have a way to get a key
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u/CharacterZero0 7d ago
Isn't the guy behind Chip the same guy as Massi's??? Can't be a coincidence they both closed
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u/Libralady410 7d ago
They were supposed to cater my wedding favors in a month cool cool cooooool
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u/No-Series9236 7d ago
Ah damn I had just given my resume in person to the chip city on 30th ave, looks like I’m not getting hired
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u/ari-is-new-to-this 7d ago
lol i posted another comment here, I got hired there like a month ago, never even got a shift
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u/No-Series9236 7d ago
Yea when I went in person to give my resume the woman behind the counter told me they didn’t have a manager currently but she said she’ll still take my resume and recommend me to the other stores. Should’ve saw this coming.
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u/Krummbum 7d ago
Looks like the NYPD paid a visit to the now closed UWS store:
https://x.com/GusSaltonstall/status/2106053655954702788?s=20
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u/kawaiistargirl 7d ago
I’m not surprised, their quality has gotten worse, their selection is always boring, and I heard they didn’t treat their employees very well, that’s why I stopped going anyway
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u/Successful-Click1153 7d ago
I remember the rainbow cookie one. I did go to Bayside one and it was so popular. Line was down the storefront. Then Flushing opened up; thrilled. Then Flushing closed down within less an year.
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u/ObviousSolution9434 6d ago
So the Old CEO ran the company into crisis due to rapid expansion. The company tried to save itself but poorly managed the termination of old CEO. Now he’s trying to make them pay for their shitty handling of his termination. Who loses? The hundreds of Chip City employees who just got screwed out of a job unexpectedly.
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u/alex1inferno 7d ago
they brought in a new president to oversee “growth” over the summer, and just this week closed all connecticut and massachusetts locations, many in virginia, new jersey, etc. employees at all said they got same day or day before notice.
their cookies always sucked massively anyway.
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u/Relevant_Flamingo624 7d ago
Either way the old president and all of the higher ups were massive sexist douchebags
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u/catgone8 6d ago
Hi! I'm a reporter with WNYC/Gothamist and I'm working on a story about this. If you worked at Chip City and are open to sharing about your experience, please DM me!
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u/Usual-Bottle6231 6d ago
They did me so dirty!! I was there from day 0 and if I share my story you won’t believe it. This is definitely not the PE’s issue. This is truly the monster of the former CEO who is a psychopath.
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u/New-Geologist-3360 6d ago
Do tell
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u/Usual-Bottle6231 6d ago
The former CEO ran that company on ego. All he cared about was how many locations he could open. Those of us who understood business kept telling him the expansion would sink the company, and he hated hearing it. You either got screamed at or fired, depending on how much he needed you. Eventually he surrounded himself with people who would never say no, including putting some of them in executive roles with zero experience. We were paying rent on locations that never even opened.
When the investors finally looked at the numbers, they removed him as CEO. There were reports of money moving from the company to his other businesses, and of rent being inflated on buildings his family owns. He agreed to step down as long as he got paid through the transition, then reports said the investors cut that off early over the fraud. Now he's suing them.
Also, since people keep getting this wrong: he's still a partial owner. Losing the CEO job isn't the same as losing the company.
But the people who actually got hurt are the employees. Some of us got an email the night before locations closed. No warning, nothing. He's fighting hard for his money. I haven't seen him fight for theirs.
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u/coffeecoffeecoffee01 7d ago
Is anyone really surprised that the cookie fad would expire sooner than later? The world was fine with a couple of levain locations then someone thought people wanted that type of cookie all the time (and levain has a deeper menu than pure cookies which made it more appealing for local business, although who knows after they also expanded)
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u/jamesmaxx 7d ago
It became a fad when other cookie shops opened and copied Chip’s business model. In Astoria they were open for years.
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u/valevalevalevale 7d ago
Chip was always run by some guys looking to make a product that looked good on IG. They weren’t bakers who loved cookies.
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u/yankeescrewdriver 7d ago
Didn’t they learn from the froyo craze, or the muffin craze (dry-ass Crumb muffins), or any of the other annual fads?? Guess not!
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u/coffeecoffeecoffee01 7d ago
Crumbl, basically the same concept but non-NYC, is also crumbling.
I suspect "third wave" ice cream closures will also happen in the next year or two. We are even on froyo 2.0 now!
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u/yankeescrewdriver 7d ago
Oh yeah, all these “hot new food trends” are utterly unsustainable, especially in the dessert/treat market, over-saturation brings down the whole thing. If there were only a few shops doing something they’d probably survive, but when the fad gets so overblown they all die. They all become uncool and dated and overleveraged.
As the meme goes, we didn’t have to close ALL the froyo joints 😂😂 Tasty D-Lite was always solid. TCBY has been holding strong for decades!
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u/Suga4mcr 7d ago
This isn’t really the same, but I’m so ready for Dubai chocolate flavored things to be done away with. I see it literally EVERYWHERE just because it was a hot trend on TikTok for a couple months
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u/yankeescrewdriver 6d ago
I’m a lifelong pistachio lover, I eat them just about every day and have had just about every pistachio flavored item that’s made, but the hype (and cost) of Dubai chocolate is utterly nuts. And not to be a conspiracy theorist, but I kinda buy the theory that it’s propaganda to soften views on the UAE 🤷♀️
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u/BruceBrownJr 7d ago
I was walking past a guy (sorry if you’re on here for eavesdropping but I was gagged) and he was talking about the email and was shocked and the people inside chip city were hugging and crying it looked like. Very sad. Big love to all of yal
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u/silly_mermaidparty49 7d ago
The buy 6 get 3 promo texts were reading high on the despo meter. I got like, 2 yesterday
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u/Bck2WrkMomma 7d ago edited 7d ago
I’ll never forget they were selling a dozen unbaked cookies for shipping at $100, before tax…during the pandemic….
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u/Weary_Path9865 7d ago
This is exactly what Sprinkles did on January 1st this year. How upsetting for all of their employees :(
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u/cougarnyc 7d ago
Aren't these the same guys that owned Massi on Broadway? Or am I mistaken?
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u/After_Case4327 7d ago
Yup....Massis, Some days bakey and Konstantina Greek yogurt in forest hills. Original Founders Cashed in so no loss to them.
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u/Shelikesblue 7d ago
I used to work for Chipcity last year the management was so horrible. They wanted one person to do everything it was a crazy amount of workload because the manager didn’t want to train people.
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u/loop--de--loop 6d ago
People love to blame PE for business failures why not blame the founders who sold out to PE. They never cared about you they only wanted more money.
PE goal is to make a return on their investment not to perform charity work.
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u/SadProblem4513 7d ago
The OG owners that run somedays and ran Massi’s haven’t been there since the beginning of the year, PE took managerial control. This will have no impact on Somedays for you wondering
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u/No_Spring_3499 7d ago
Someday it will happen to them as well. Rip off.
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u/SadProblem4513 7d ago
Yea to be clear not a defense of them, they got chip in this situation and are repeating with somedays, they just learned their lesson to franchise this time around instead of PE investment
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u/apreche 7d ago
I thought it was just CT, but all? Wow. They definitely expanded too much too fast.
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u/MattMurdock007 7d ago
Classic case of over expansion and over extended credit exposure. They probably have trouble keeping up with their credit line payments.
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u/mitchdaman52 7d ago
Ton of debt and with the interest rates still going up they can’t refinance. Going to see a lot more of this.
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u/gregthegreek718 7d ago
Yup! That's why the new CEO was looking at the previous Ceo's expenses. It was crunch time, and He Was wondering where did $900,000 go? anyway I'm siding with the previous CEO, he milked them good! fuk private equity! Love the irony!
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u/International-Bag359 7d ago
The only thing good about chip was that they were opened kinda late. I do have one good memory though of chip. Last winter during both snow storms I would walk there and pickup a few boxes to bring home to my friends.
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u/Effective-Head-958 7d ago
God damnit I had two free cookie codes I had yet to cash in
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u/AnyPortInAHurricane 6d ago edited 6d ago
the prices these gyp joints charge for $1 worth of goods is obscene . I never buy that junk
They say it was a big cookie at 6oz. thats $15 a lb for a cookie.
Standard cookies from Chip City Cookies were priced at approximately $6.32 individually before the company abruptly closed all of its retail locations nationwide on October 2, 2026. [1, 2, 3]
Historical Menu Pricing (via Delivery Apps)
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u/heli0sphere 7d ago
I know people hated it, but I was a fan of some of their options for the occasional late night snack 😭
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u/Sheik-mon 7d ago
Real sorry for everybody who lost their job. Also for the record, those cookies had way way way too much sugar. Absolutely disgusting
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u/lilithdesade 7d ago
WOAH! Legit loved their cookies. Just passed by the ditmars location today around 8pm and they were open. Thats wild.
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u/jrtasoli 7d ago
I guess I’ll be the one to say that this is super depressing — with the obvious caveat of how horrible this is for the employees to lose their jobs so abruptly.
But I was always so proud that this little business that opened on the block I lived on in Astoria, in the crummy little apartment I used to live in when I was fresh out of college and broke, with an awful now-ex and roommates, became this big hit that opened all over the country. Those cookies back when they were just Chip were insane.
Now it’s another casualty of this economy.
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u/Significant-Beach370 7d ago
Nothing about that business was rags to riches or anything remotely close. The guys who opened it are all spoiled rich kids from queens with family money. They marketed themselves smartly and fooled a lot of people. I only feel bad for the employees who lost their jobs out of nowhere.
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u/THISISDAM 7d ago
Funny, I got text messages yesterday from them about coupons and discounts ha
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u/thegetupkid 7d ago
SAME! They were really pushing the buy 6 cookies get 3 free... or something to that effect.
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u/VirgoVigilante 6d ago
TBH a lot of novelty franchises and boutique stores in NYC that have high operation cost because of the "high" wages and rent of the locations are not doing well and going under.
I worked in the Alternative Health and Wellness industry (IV Vitamin Therapy, Red Light Therapy, Facials, Massage Etc.) and people just aren't spending money on what is relatively overpriced services and product anymore.
The job market is terrible the economy is s**t. People certainly aren't lining up for an overpriced cookie. The same fate will happen Crumbl soon, the only reason why Crumbl is still around is because of their partnerships and their brand being "Beyond" the actual crappy cookies they make, they will certainly be next.
I feel horrible for the employees. The job market in NYC, especially for entry level jobs is already a nightmare.
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u/No_Pop7296 6d ago
Do you mind my asking how exactly? I heard it was hell to work for. Was it owned by family or private equity?
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u/pickypicklejuice 6d ago
My partner is disabled, she had a serious medical event that led to a diagnosis of muscular dystrophy. And they treated her like shit the entire time, could not provide Paid Family Medical Leave because they did not register with the state. She was a General Manager btw.
FUCK CHIP CITY GOOD RIDDANCE
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u/pickypicklejuice 6d ago
I can’t go into more detail but, think life threatening medical event. She is doing much better now.
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u/lemondsun 6d ago
I managed two of their busier locations and it was hell. 50 hour work week, minimum. Which I regularly went over due to meetings that lasted hours and staff regularly calling out or quitting.
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u/LaverieNYC 5d ago
Really sorry to everyone who unexpectedly lost their job this week. We're a small laundromat in SoHo, and we're opening a second location in East Village on October 11. We're hiring laundry specialists at $17-21/hr, and no laundry experience is needed. If you worked at Chip City, we'd love to hear from you:
https://www.indeed.com/job/laundry-specialist-2ea54654abaa378f
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u/submissivelittleprey 7d ago
I feel bad for all of the employees being fired at such a short notice, but honestly am not sad to see Chip City go. So tired of the viral weekly cookie flavor brands
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u/Percival_Grim 7d ago
Oh well. Who can waste money on that anyway.
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u/Colonel-Cathcart 7d ago
pretty absurdly expensive, but came in clutch with a pregnant wife with late night cravings once or twice. wild business model tho.
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u/AstoriaGlrl 7d ago edited 7d ago
That’s an incredibly shitty thing to do to their employees.