Cupcake Chain Crumbs Is NOT Going The Way Of The Fondue Pot
You may have heard the news that national cupcake chain Crumbs Bake Shop went out of business, last week shuttering all if its 50 locations in 10 states and the District of Columbia. Many wrote about the bursting of the "cupcake bubble" — something our friend Allison Robicelli has written about beautifully in the past. Others simply danced on the grave of an institution that may have simply aged out of the zeitgeist. But this weekend it appears that cupcake chains are still very much viable.
Also see: Robicelli State Of Mind: Meet Brooklyn's Great Cupcake Renegades
According to the Hollywood Reporter, CNBC host Marcus Lemonis has teamed with Fischer Enterprises (the same company behind mall chain Dippin' Dots) to revive Crumbs. "The group has provided pre-petition secured financing for Crumbs' Chapter 11 bankruptcy petition that the cupcake company filed earlier in the day, committed to provide debtor-in-possession financing and has entered into an asset purchase agreement, allowing it to buy Crumbs, pending approval from the Bankruptcy Court." Translation? The partnership hopes to re-open in select locations and move towards a franchise model not previously followed.
Bottom line — cupcakes live! Long live cupcakes.
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