Taylor Chip, a Lancaster County cookie brand that styled itself as a fresh competitor to Crumbl, is now seeking protection from its creditors in federal court. The company has filed for Chapter 11, a move that collides awkwardly with recent public investment and raises questions about how aggressively governments should back fast-growing food chains.
The same business that just turned to bankruptcy court was recently held up as a model for how public dollars could expand Pennsylvania’s agriculture sector. That tension between optimism and insolvency sits at the center of Taylor Chip’s story and offers a cautionary case study for the cookie boom.
From growth darling to Chapter 11
Taylor Chip, LLC has initiated a reorganization case titled In re: Taylor Chip, LLC by filing a Voluntary Petition for Non-Individuals Filing for Bankruptcy (Official Form 201) in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, Reading Division, according to court records. The petition lists the proceeding as Case No. 26-10550 and includes the debtor’s legal name, address, counsel of record, and self-reported ranges for assets and liabilities, as well as related declarations made under penalty.
The filing confirms that Taylor Chip is seeking relief under Chapter 11 and specifies the chapter and any subchapter election, including whether the company is proceeding under Subchapter V, according to the same bankruptcy docket. That structure gives the company a path to keep operating while it negotiates with creditors, but it also locks in a public record of financial strain that sits uneasily beside its recent status as a publicly supported expansion story.
Shapiro administration’s $3.5 million bet
Earlier, the Shapiro Administration committed a total of $3.5 million to help Taylor Chip expand in Lancaster County, according to a release from the Pennsylvania Department of Community & Economic Development that described the state’s support as an investment to grow Pennsylvania’s agriculture sector through the cookie company’s plans. The same document states that the funding package was structured as economic-development support tied directly to Taylor Chip’s expansion, including a referenced PIDA loan proposal amount, a grant extension amount, projected capital expenditures and specific job creation and retention expectations, as laid out by the DCED release…