Crumbs Ready to Make a Crumback
Crumbs Bake Shop, the specialty cupcake store known for its colossal cakes that closed last week, may be making a colossal “crumback,” thanks to Marcus Lemonis who has rescued makers of baked products before.
After voluntarily filing for Chapter 11 bankruptcy, Crumbs unexpectedly shut down all its 48 remaining stores in 10 states July 7, including three in D.C., according to the company. The D.C. stores were near 11th and F Streets, NW, near 19th and L Streets, NW, and at Union Station.
The New York City-based company, founded in 2003, had already closed 15 underperforming stores and was notified that Nasdaq planned to delist the company’s shares from the stock exchange, expediting the popular bakery’s imminent demise.
A joint venture by Fischer Enterprises and Lemonis, the company behind Dippin’ Dots ice cream, has agreed to provide financing and acquire the bankrupt Crumbs. Lemonis, host of CNBC’s reality television show, “The Profit,” has previously invested in several other snack-based companies, including Doc Popcorn, Wicked Good Cupcakes, Sweet Pete’s Candy and Little Miss Muffin.
To strengthen the future of Crumbs, Lemonis and Fischer said they want to use their prior knowledge of these snack stores to take the company beyond just cupcakes and attract a broader range of customers, potentially expanding their product line to ice cream, popcorn or other sweet treats.
The agreement also includes a retail strategy of evaluating each location with the goal to reopen select ones, possibly even adding new stores if necessary, as well as move toward a franchise store model.
It is still unclear when exactly Crumbs – and in what form -- will be re-opening for business.