Rejoice, cupcake lovers, because Crumbs might be staying open. On Monday, the chain announced that it would be closing all of its locations after it suffered a couple of years of financial strain. However, they just might live to fight another day.
The New York Times reported Thursday that Crumbs is close to gaining new financing from a new group of investors, including Marcus Lemonis, chairman and chief executive of Camping World and Good Sam Enterprises. Lemonis is also the star of the CNBC reality show “The Profit,” which focuses on saving small businesses from closure.
Lemonis is getting together with Fischer Enterprises, who was responsible for saving Dippin’ Dots from bankruptcy in 2012, to finance Crumbs. The financing could potentially lead to a complete buyout of the cupcake company.
Lemonis hinted to his Twitter followers on Tuesday that Crumbs may not be closing after all. In response to news articles about the closure, he tweeted some mysterious messages, saying “Stay tuned” and “Not so fast.” The news about the partnership with Lemonis and Fischer Enterprises has caused Crumbs shares to go up more than 1,000 percent, rising from 3 cents per share to 50 cents per share.
The reaction to Crumbs closing was overall one of disappointment, and a cupcake from the store even went up on Ebay for $255. The store was founded in 2003 by Jason Bauer and his wife, Mia, and went public in 2011 with 34 stores across the country. Edward M. Slezak, chief executive of Crumbs, made a statement, saying, “We know that everyone has an emotional connection to the Crumbs brand and its products, and we’re pleased to be in talks with various interested parties that are allowing us to pursue all of our options for the business, which includes consideration of restructuring alternatives.”
Crumbs Bake Shop has filed for a bankruptcy plan, which includes a prearranged sale to Marcus Lemonis. Lemonis and his partners will acquire all of Crumbs' assets and begin revamping the bakery immediately. Lemonis intends to keep the signature cupcakes on the menu, but plans to also include other snacks and sweets, including gourmet popcorn, to broaden Crumbs' customer base. The group has stated that they are looking to reopen locations soon, but there are no exact dates as of yet.