A spokeswoman for the Crumbs Bake Shop announced Monday that the chain is going out of business. Wall Street Journal reports that the company officially ceased operations this week as they evaluate their remaining options. This came as a shock to many employees who had no warning of what would happen until the day of. It was also declared that they would not be paid after Monday, the day of the announcement.
Crumbs was founded in 2003 by Jason and Mia Bauer, a husband and wife partnership. The company met success for the most part of a decade and the cupcake craze grew. Three years ago Crumbs went public after being purchased by a shell company. The company has lost money since, however, thanks in part to the decline of the cupcake fad. Crumbs closed nine stores at the end of 2013 due to under-performance, as well as six stores in early 2014.
On July 1, NASDAQ suspended Crumbs' shares due to the company not meeting the minimum requirements of $2.5 million in shareholder equity or keeping up with benchmarks for its market cap or annual net profit, according to WSJ. The company's stock had been worth, at one point, $13 a share but fell below 30 cents last month.
I guess croissant donuts are partially to blame.
