Cupcake Shop Crumbs May Not Be Dead Yet

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-]