Taylor Chip: Forbes 30 Under 30 Cookie Brand Closes All Locations After Chapter 11 Filing

Taylor Chip, LLC filed for chapter 11 Subchapter V bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania on February 12, 2026 (Case No. 26-10550). The Lancaster County cookie company, founded in 2018 by husband-and-wife team Doug and Sara Taylor, listed $2.6 million in liabilities against $387,000 in assets after a failed expansion into Philadelphia left the business unable to service its loans. Originally filed as a reorganization, the case shifted toward dismissal in early April 2026 when the company announced it would close all remaining locations and shut down its online store by April 11, arguing that "rehabilitation is not feasible."

Debtor(s)	Taylor Chip, LLC
Court	U.S. Bankruptcy Court, Eastern District of Pennsylvania
Case Number	26-10550
Judge	Patricia M. Mayer
Petition Date	February 12, 2026
Total Liabilities	$2.6 million
Total Assets	$387,000
Creditors	49

From a Maxed-Out Credit Card to Forbes 30 Under 30

Doug and Sara Taylor opened their first cookie stand in August 2018 at a marketplace in Lancaster County, starting with no outside investors and a maxed-out credit card. Doug, who had previously run a recording studio, built a brand around thick, all-natural chocolate chip cookies.

The brand grew rapidly. By September 2020, Taylor Chip was hitting $100,000 per month in sales with 25 employees and 60% of business coming from online orders. The SBA named the Taylors Eastern Pennsylvania Young Entrepreneurs of the Year in 2023. That same year, Taylor Chip landed at No. 285 on the Inc. 5000 list of America's fastest-growing private companies, and was later recognized on the Inc. Regionals Northeast list with 445% revenue growth. Sara Taylor made the Forbes 30 Under 30 list for Food & Drink in 2024. By November 2024, the company reported $4.0 million in annual revenue, an 80-person team, and a valuation of $25 million.

The company expanded to eight locations across Pennsylvania: a standalone store on Manheim Pike in Lancaster, a location at 23 Center Street in Gordonville (near Kitchen Kettle Village), a Hershey store at Fresh Market, a York location at the Firehouse Shoppes that opened November 2023, a vendor stand at Harrisburg's Broad Street Market, and two Philadelphia stores.

The Philadelphia Expansion

In late 2022, Taylor Chip signed leases for two retail locations in Philadelphia: a store at 1807 Chestnut Street near Rittenhouse Square and another at 1828 Frankford Avenue in Fishtown. The buildout was expected to take about six months. Permit delays stretched the timeline to nearly two years.

The Chestnut Street store, originally scheduled to open September 14, 2024, finally opened on November 16, 2024. The Fishtown location followed in January 2025. During the nearly two years of delays, the stores generated ongoing expenses without revenue. The monthly lease at Chestnut Street was $8,750 — roughly five times the $1,742 monthly rent at the Manheim Pike store in Lancaster.

Once open, the Philadelphia stores never met revenue expectations. Despite adding two new locations, company-wide revenue fell 6% in the year before filing. Co-founder Doug Taylor described a "financial downward spiral" that began with the Philadelphia stores: "We just couldn't pay our loan."

Both Philadelphia locations closed without public notice in approximately the first week of February 2026, after operating less than 17 months combined.

The Abandoned $15.1 Million Creamery

In September 2024, the Shapiro Administration announced $3.5 million in state funding to support a new 25,000-square-foot manufacturing facility at 1780 Columbia Avenue in West Hempfield Township, Lancaster County. The total project cost was $15.1 million. The state commitment included a $2.625 million PIDA loan and a $470,076 extension of a Pennsylvania Dairy Investment Program grant originally awarded in 2019. The facility was expected to create 35 new full-time jobs and expand the company into ice cream production using locally sourced dairy.

The Taylors had purchased the property in 2021 and spent three years and hundreds of thousands of dollars in development costs before abandoning the project in spring 2024, citing rising construction costs. The company stated it never received the state funds.

$2.6 Million in Debt: What the Schedules Show

The petition lists 49 creditors.

Secured claims: $2.25 million. The filing lists $2.25 million in secured claims from three SBA loans and one bank loan, all secured by the company's accounts, equipment, fixtures, and inventory. The single largest obligation is a $1.9 million SBA 7A loan through NewTek Bank issued in June 2025. The SBA's total exposure across all three federal loans exceeds $1.8 million, accounting for more than 70% of total liabilities. The company's earlier pandemic-era loans included a PPP loan and a $45,000 EIDL loan paid off by March 2021.

Unsecured claims: $342,000. The unsecured creditor list totals $342,000 and includes over $134,000 in credit card debt, $55,000 owed to food delivery company DoorDash, and $49,000 in legal fees.

Assets: $387,000. The company's asset schedule lists $20,000 in checking and savings accounts, $11,000 in security deposits, and $91,000 in raw materials and inventory. The Taylors also took out a $100,000 home equity line of credit to pay off credit card debt, tax obligations, and equipment — and emptied their personal savings to keep the company afloat. Doug Taylor injected an additional $120,000 from a side business trading high-end cars.

NewTek's Objection and the Cash Collateral Fight

On March 3, 2026, NewTek Bank filed an objection to Taylor Chip's plan to use $112,000 in cash collateral that secured its loans. NewTek argued the company's reorganization plan was "wholly speculative" and lacked a reasonable chance of success.

March net revenue came in at $110,000 — less than half of what the company projected in its reorganization plan.

Layoffs, Failed Holiday Orders, and a Facebook Hack

Taylor Chip cut its workforce from roughly 55 to about 25 employees before filing. The reduced staff was unable to fulfill 500 to 800 holiday orders during the winter 2025 season, forcing the company to issue refunds.

A Facebook account hack in late spring 2025 disrupted the company's primary marketing channel, contributing to a decline in online sales.

From Reorganization to Motion to Dismiss

Taylor Chip initially framed the filing as a path to reorganization. Doug Taylor told reporters in February: "Building something from nothing means taking risks."

By early April, the Taylors reversed course. The company filed a motion to dismiss the bankruptcy case, arguing that "the added administrative costs were depleting a company that was already beyond rehabilitation." In a Facebook post, the Taylors wrote: "We pulled from our personal savings just to keep payroll."

The closure schedule:

• Philadelphia stores (2): closed without notice, first week of February 2026
• Harrisburg (Broad Street Market): closed before the petition date
• Gordonville/Intercourse: closed before April 2, 2026
• York (Firehouse Shoppes): closed April 5, 2026
• Hershey (Fresh Market): closing April 11, 2026
• Manheim Pike, Lancaster: closing April 11, 2026
• Online store: closing April 11, 2026 (last shipping orders accepted by 9 a.m. on April 8 with code GOODBYE50 for 50% off)

A bankruptcy court hearing is scheduled for April 21, 2026 — 10 days after the final stores close.

Frequently Asked Questions

Is Taylor Chip still open? No. Taylor Chip announced in early April 2026 that it is closing all remaining locations. The York store closed April 5, and the Hershey, Manheim Pike, and online store close April 11, 2026. A motion to dismiss the bankruptcy case has been filed.

How much debt does Taylor Chip have? The bankruptcy schedules list $2.6 million in total liabilities, including $2.25 million in secured claims (primarily SBA loans through NewTek Bank) and $342,000 in unsecured claims. The company has just $387,000 in assets, and the founders emptied their personal savings and took out a $100,000 home equity line of credit.

Who owns Taylor Chip? Husband-and-wife co-founders Doug Taylor and Sara Taylor. Sara was named to the Forbes 30 Under 30 list for Food & Drink in 2024.

Why did Taylor Chip file for bankruptcy? A failed expansion into Philadelphia, where permit delays stretched a planned six-month buildout to nearly two years. The stores generated ongoing expenses — including $8,750/month in rent at Chestnut Street alone — without revenue. A $1.9 million SBA loan taken in June 2025 to keep the company afloat became the single largest debt. A Facebook hack, failed holiday orders, and continued sales declines compounded the crisis.

Who is Taylor Chip's largest creditor? NewTek Bank, which holds a $1.9 million SBA 7A loan issued in June 2025. NewTek objected to the company's use of cash collateral in March 2026, calling the reorganization plan "wholly speculative."

What happened to the $15 million creamery? The Taylors planned a 25,000-square-foot manufacturing facility in West Hempfield Township with $3.5 million in state funding. They abandoned the project in spring 2024 after spending hundreds of thousands on development, citing rising construction costs. The state funds were never disbursed.

For more bankruptcy case coverage, visit the ElevenFlo bankruptcy blog.