clock menu more-arrow no yes

Filed under:

Cupcake Shop Crumbs May Not Be Dead Yet

Photo: mr_t_in_dc/Flickr

Cupcake chain Crumbs, which announced earlier this week that it had closed all of its stores, might not crumble away into oblivion just yet. According to CNBC, a group of investors have confirmed plans to "provide financing for the struggling chain as a prelude to an acquisition." Crumbs shuttered its 50 remaining locations a week after the Nasdaq Stock Exchange dropped the company when its price fell to less than 30 cents a share.

The cupcake chain had been struggling financially for quite some time (see a full history here): Crumbs announced losses of $18.2 million last year and $10.3 million in 2012 and had recently closed 15 stores before announcing its company-wide shut down. Following the news of the potential financing, Crumbs' stock jumped from 3 cents a share to 35 cents, a 950 percent increase. Maybe the cupcake trend isn't completely dead after all.

· Crumbs Bake Shop Nears Lifeline [CNBC]
· All Crumbs Coverage on Eater [-E-]

Sign up for the Sign up for the Eater newsletter

The freshest news from the food world every day