Crumbs Will Rise
Crumbs Bake Shop may not crumble after all.
Following the company's Chapter 11 bankruptcy filings and the abrupt closure of all Crumbs locations last week, the company announced on July 11 that the cupcake chain will receive financing by a group of investors with an interest in acquiring the company's assets.
Marcus Lemonis, CEO of RV parts supplier Camping World and Good Sam Enterprises, and host of CNBC series "The Profit," partnered with Fischer Enterprises, L.L.C. to acquire the company. The group plans to reopen some of the chain's 50 stores, with the potential to launch new locations. The two investors work with a range of food products, including Boulder, Colorado company Doc Popcorn and futuristic ice cream franchise Dippin' Dots, and Lemonis said in a statement that he hopes to "leverage the synergies" between Crumbs and the group's other companies. Crumbs CEO Edwards Slezak will remain with the company to ease the transition. "We are very pleased to have reached this agreement with Lemonis and Fischer after carefully evaluating opportunities to strengthen Crumbs' financial position in order to ensure a strong future for the Crumbs brand and business," Slezak said in a statement. "The steps we are taking today will allow us to continue to execute our business strategy, expand our licensing business and position ourselves to move toward a franchise store model. We remain saddened that we were forced to cease operations before this agreement was reached, but we strongly believe that pursuing this sale through the chapter 11 process is ultimately in the best interest of the Company and its stakeholders." Crumbs was a major player in the cupcake trend of the early aughts, opening its first outpost on the Upper West Side in 2003. At the time of its bankruptcy filing, Crumbs sold its densely frosted cupcakes, including 'colossal' cupcakes meant for six or more people, from retail locations in 12 different states, with 13 shops in Manhattan.
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