FROSTED FEELS: Crumbs Cupcake Chain Goes Out of Business

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.

H/T Wall Street Journal

 

More content

Products
The Mac & Cheese Hack That Broke TikTok Is Back on Shelves
We know food influencer Tini Younger’s receipes are hot, but the return of her spicy collab with Nestle Carnation Evaporated Milk just further proves that.…
,
Culture
NBA Legend Tony Parker Has A 24-Hour Restaurant In His Mansion
The celebrity flex is nothing new. We’ve seen everything from bowling alleys in mansions to dealership-size car garages, and while it’s always impressive, it’s rarely…
,
Eating Out
The Best Thing Jack’s Done In Years? These Chili Crisp Curly Fries
Jack in the Box’s new Flavored Seasoned Curly Fries—specifically the Chili Crisp one, because the BBQ Potato Chip flavor didn’t come close—may be the best…
,
Burger
We Deliver!

Enter your email address below and we'll deliver our top stories straight to your inbox