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Crumbs Bake Shop Closes All Locations With One-Day Notice

Submitted by on July 8, 2014 – 10:49 amNo Comment
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HAGEN FOR NY DAILY NEWS

The mighty cupcake has fallen. Crumbs Bake Shop, a New York-based chain that once represented the height of the national cupcake trend, announced on Monday that it was closing all of its shops at the end of the day, after years of losses and falling stock prices.

“Regrettably Crumbs has been forced to cease operations and is immediately attending to the dislocation of its devoted employees while it evaluates its limited remaining options,” the company said in a statement to The Wall Street Journal.

The article reports that employees were unaware until they arrived at work on Monday morning.

Crumbs was opened by a husband-and-wife team on Manhattan’s Upper West Side in 2003, and became popular for their large cupcakes with heavy frosting and creative flavors. It was bought in 2011, and taken public that year. It had 65 stores in 12 states and DC earlier this year, but had been closing underperforming locations since late last year.

Stock price had recently dipped under $0.30 (from a high of $13), and the company posted losses in the tens of millions for both 2012 and 2013.

Crumbs also saw a declining demand for their sweet treats as others like the cronut became trendy; and the marketplace became crowded with other chains like Baked by Melissa, Sprinkles, and Georgetown Cupcakes.

What do you think, reader? Is the cupcake craze over? Can it no longer support big chains? Let us know in the comments below.

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