Cupcake Fans To Get Second Serving Of ‘Crumbs,’ Group Invests $6.5-Million In Failed Chain
NEW YORK (CBSNewYork) — There will be a second coming of Crumbs.
An investment group is forking over $6.5-million for the failed cupcake chain.
They’re hoping to find sweet success by offering a wider variety of treats that will include vegan and gluten-free options.
Crumbs went belly up in July, CBS 2 reported.
“Regrettably, Crumbs has been forced to cease operations and is immediately attending to the dislocation of its employees while it evaluates its limited remaining options,” the company said in an emailed statement at the time.
New Yorker Jason Bauer started Crumbs in 2003 with his wife Mia, selling giant cupcakes in flavors including Cookie Dough and Girl Scouts Thin Mints. They sold half of their stake for $10 million just before the company went public in 2011, CBS 2’s Tony Aiello reported last month. In three years the stock tumbled from $13 a share down to 35 cents a share.
For the three months ending on March 31, Crumbs Bake Shop Inc. reported a loss of $3.8 million, steeper than the loss of $2 million from the same period a year ago.
The company had warned in a filing with the Securities and Exchange Commission this past May that it “may be forced to curtail or cease its activities” if its operations didn’t generate enough cash flow.
Crumbs struggled as consumers became more calorie and cost conscious. A single specialty cupcake had as many as 1,050 calories and a single specialty cake could set you back $34, Aiello reported.
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