Cupcake chain Crumbs, best known for its gigantic cupcakes, has shut down all of its stores. According to the Wall Street Journal, the company notified employees yesterday the stores would be shuttered "at the end of the business day." The AP writes that at the end of last year, Crumbs had around 165 full-time employees and 655 part-time employees, but that a rep for the chain wouldn't reveal how many workers have been affected by the closure. The chain's website lists that the cupcake shop has 50 locations across 12 states but as of yet it hasn't been updated with the closure information.
The chain has struggled financially over the past few years. The WSJ notes that according to securities filings, Crumbs announced losses of $18.2 million last year and $10.3 million in 2012. The chain had also closed 15 stores in recent months and announced that more closures would be on its way. The biggest blow happened earlier this month when the Nasdaq Stock Exchange dropped the company after its price fell to less than 30 cents a share.
The cupcake trend has been dying out for a while now, but that didn't stop Crumbs from attempting to salvage the company. Just a few months ago the chain tried to shift "its energies from its own struggling outlets" to grocery stores by selling cupcakes, ice cream cakes, and a Cronut knock-off called the "Crumbnut" at BJ's Wholesale Clubs across the country.
· Crumbs Bake Shop Closing Its Doors [WSJ]
· Cupcake Shop Crumbs Shuttering All Its Stores [AP]
· All Crumbs Coverage on Eater [-E-]