Chip City Cookies has closed every store. The New York-born chain shut its remaining shops last week, Nation's Restaurant News and USA Today reported. It blamed "macro-economic headwinds."

Company president Nicolas Baizan announced the closures in a message, NRN reported. "We no longer have the funding," the company said, according to the Queens Daily Eagle. Workers will be paid through Oct. 18, the Eagle reported.

The final store count differs by outlet. NRN reported 22 stores closed, while USA Today put the number at 24.

The closing came days after a legal fight went public. Co-founder Peter Phillips sued the company on Sept. 28, the Eagle reported. He says his pay was cut off Sept. 18. His suit seeks money owed under his contract, including a salary of $210,000 prorated to $157,500, NRN reported. The company has raised its own questions about some spending, including about $110,000 and rent, the Eagle said.

Chip City's rise was quick. It opened in Astoria, Queens, in 2017, selling cookies in about 200 rotating flavors. It reached about 45 locations by 2024, NRN said. System sales topped $35 million last year.

Big-name money came in along the way. Enlightened Hospitality Investments, the fund tied to Shake Shack founder Danny Meyer, first invested in 2022. In March, it took a majority stake for $4 million, NRN reported. The reports differ on how much the fund put in overall. NRN says $17.5 million in total; the Eagle cites a $10 million investment in 2022.

The cookie business has gotten harder. Rival Crumbl has also closed stores as the boom in specialty cookie shops cools, NRN noted.

For fans, the closings took effect right away, with no farewell period announced.

What we know: Chip City has closed all its stores and blamed the economy.
What we don't: How the founder's lawsuit will end, and whether anyone will revive the brand.