Taylor Chip LLC has filed for Chapter 11 bankruptcy protection. The cookie chain is also planning to close Philadelphia locations owing to various financial troubles. Operations will continue at its remaining locations.
Chapter 11 Filing Proceeds Under Subchapter V
According to the court records available from PACER, Taylor Chip LLC made a voluntary Chapter 11 filing on February 12. The records state that the Lancaster-based cookie chain is a small business debtor as per 11 U.S.C. § 101(51D) and has chosen to move ahead under Subchapter V.
Attorney Albert A. Ciardi III of Ciardi Ciardi & Astin is representing Taylor Chip LLC in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. Filing details show that Doug Taylor, a member of Taylor Operations Holding, LLC and the owner, is the authorized representative.
Permit Delays Cited in Philadelphia Closures
Taylor Chip confirmed its bankruptcy in a recent Instagram post. The cookie chain emphasized that the latest Chapter 11 filing does not mean a total shutdown of operations. Instead, the company said the closures are a key step in its restructuring plan.
In its statement, the company cited several factors behind the filing. The company pointed to extended permit delays for its Philadelphia stores.
The cookie chain had signed its Philadelphia leases in late 2022. While most Taylor Chip locations opened within three months, Philadelphia permits reportedly took about six months each. At the end of the process, two years went by for the cookie brand, prompting constant cash drain.
The company said it relied on alternative financing after failing to secure investor backing. The Philadelphia locations failed to generate enough revenue to offset debt tied to the extended permitting process.
The company also reported a robbery and the sudden loss of its Facebook account, which had nearly 150,000 followers.
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About the Company
Founded at Sara and Doug Taylor’s 2016 wedding, the brand opened its first cookie stand in 2018. Over the years, the company expanded through local markets and built a strong social media following.
In addition to a variety of cookies, Taylor Chip broadened its product range to include ice cream. Gift cards, merch, corporate gifts, wholesale items, and more products are currently available as well.
Case Related Details
According to court filings, this is the first bankruptcy filing within the last eight years for Taylor Chip LLC. The filing details add that none of the affiliates or business partners of the cookie chain has a pending bankruptcy case in the same court.
Additional information in the Chapter 11 Subchapter V process of Taylor Chip LLC is:
- Filing Date: February 12, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of Pennsylvania
- Type of Filing: Active, Voluntary Petition, Subchapter V
- Chapter: 11
- Case Number: 26-10550-pmm
- Estimated Assets: $100,001-$500,000
- Estimated Liabilities: $1,000,001-$10 million
- Reason for Filing: Restructure business under court supervision
As of now, Taylor Chip LLC owes roughly 49 creditors in total. Court records indicate that funds will be available for distribution to the unsecured creditors.
The Subchapter V process will allow the company to restructure its debt while continuing operations at its remaining stores in Lancaster and beyond.
