New York-based cupcake chain Crumbs Bake Shop is officially crumbling to its close in all locations around the country, according to the Wall Street Journal. The bakery, which had just under 50 locations in 10 states had been experiencing sinking sales since 2012 when they closed dozens of stores. On July 1, the NASDAQ Stock Market dropped the company, refusing to trade any more shares. The company failed to meet the minimum of $2.5 million in shareholder equity.
The cupcake shop, known for its massive cupcake concoctions reportedly notified its employees on Monday about the closing of their remaining locations.
“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 they released.
Unaware that the bakery was running out of money, various Manhattan employees said they were clueless about the imminent downfall of the company.
“I honestly do not know what’s going to happen. All I know is we’re open right now, and the store is full, so I can’t talk long,” one employee at the Crumbs on 72nd Street told NY Daily News.
“Nobody knows anything or what to do,” another worker told NY Daily News. “The employees are finding things out online or from costumers coming in and asking us stuff. Just today we found out something was going on because a manager called to say we were closed Tuesday—but they made it sound like it was just for one day. We’re supposed to get paid this Friday and I don’t even know if that will happen.”
Founded by Jason and Mia Bauer in 2003, the company hit its peak in the gourmet cupcake trend of 2011 with 78 locations and 50 different varieties of cupcakes. By the end of the first quarter this year, Crumbs reported a loss of $3.8 million. Yet, in an interview with Bloomberg Businessweek earlier this year, Ed Slezak, the CEO for the company said they were “looking at licensing its brand for bake mixes and coffee that could be sold through other retailers,” such as the “Crumbnut,” which is a croissant-doughnut hybrid.
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