All articles tagged with #enlightened hospitality investments
Chip City permanently closed all U.S. locations on October 2, 2026, citing macro-economic headwinds and insufficient funding. The abrupt shutdown followed a lawsuit by co-founder Peter Phillips over unpaid severance and coincided with a reported burglary at a Manhattan store. Employees are to be paid through October 18, though the closure may violate New York’s WARN Act.
Chip City, the viral cookie chain founded in Astoria, Queens, has permanently closed all remaining U.S. locations following a sudden shutdown order issued on Thursday. The closure follows a lawsuit filed by co-founder Peter Phillips against the company and its private equity backer, Enlightened Hospitality Investments, alleging breach of contract and wage theft. While the company cited 'macro-economic headwinds' and insufficient funding, internal documents suggest significant financial irregularities, including over $900,000 in disputed expenses. Employees are to be paid through October 18, and a burglary at a Manhattan location has prompted an NYPD investigation.
Chip City permanently closed all remaining locations on October 2, 2026, citing macro-economic headwinds and lack of funding. The shutdown followed a lawsuit by co-founder Peter Phillips over unpaid severance and coincided with a reported burglary at the Upper West Side location. Employees are to be paid through October 18, though the abrupt closure may violate New York’s WARN Act.