\u201cI\u2019m super excited for the future, but we basically didn\u2019t have a future if we were going to keep going the way we were going,\u201d Doug Taylor said. \u201cFor the last two years, it seemed like everything that could go wrong did go wrong.\u201d<\/p>\n
READ:\u00a0Taylor Chip drops plans for West Hempfield Twp. creamery, seeks new location<\/a><\/p>\n Expansion problems<\/p>\n Doug Taylor said a financial downward spiral began when opening the Philadelphia retail stores in Fishtown and Rittenhouse. Getting the stores open took two years instead of the expected six months. Along the way, costs mounted and the Taylors took on an unspecified amount of debt.<\/p>\n When the Philadelphia stores finally debuted in fall 2024, several other specialty retailers were offering the type of premium cookie that had powered Taylor Chip\u2019s early success. The Philadelphia stores never met revenue expectations, Doug Taylor said. Even with two new stores, Taylor Chip\u2019s companywide revenue was down 6% last year.<\/p>\n As the company was managing the extra costs for its underperforming Philadelphia locations, Doug Taylor said it experienced a hack of its Facebook account that crippled its main method of marketing and led to a decline in sales. As revenue dropped, the Taylors laid off many of their roughly 55 employees, leaving it now with about 25.<\/p>\n Doug Taylor said those laid-off employees were missed over the winter holidays when demand picked up and the smaller staff was unable to fill between 500 to 800 orders, requiring refunds to be issued.<\/p>\n After a slow January, the Taylors realized they had exhausted their options.<\/p>\n \u201cWe basically got to the point where we just couldn\u2019t pay our loan,\u201d said Doug Taylor, who declined to specify the amount. \u201cWe had emptied out our entire savings, including our home equity line of credit. We did everything we could to keep it going.\u201d<\/p>\n The company opted for Chapter 11 bankruptcy, which allows a business to reorganize its debts and continue operations, rather than a Chapter 7 liquidation. While Doug Taylor declined to estimate the total debt \u2014 which will be detailed in an upcoming filing \u2014 he remains optimistic about one day turning Taylor Chip into a national brand.<\/p>\n \u201cEvery decision you make as a small business with no backers is a decision to bet the farm if you want to grow,\u201d he said. \u201cBut if you bet the farm and you plant the crop and it doesn\u2019t rain, well, you\u2019re out of luck. And that\u2019s what happened.\u201d<\/p>\n