Crumbs Bake Shop
| File:Crumbs-Bake-Shop-Logo.gif | |
| Company type | Public |
|---|---|
| Template:OTC Pink | |
| Industry | Bakery |
| Founded | 2003 |
| Founder | Mia & Jason Bauer |
| Defunct | December 19, 2016 |
| Headquarters | , |
Key people | Harley Bauer (CDO) |
| Products | Cupcakes, cakes |
| Revenue | $57 million (2013 revised projection) |
| Website | Crumbs Bake Shop |
Crumbs Bake Shop was a bakery chain based in New York City. Established in 2003 by Mia and Jason Bauer, it grew to encompass 79 outlets spanning ten states plus Washington, D.C., emerging as the largest cupcake franchise nationwide. The brand featured more than 50 gourmet cupcake flavors. Following a short-lived reopening in 2014, all retail locations permanently ceased operations in December 2016; currently, the brand functions solely through an online platform.
Partnerships
On August 6, 2012, Crumbs initiated a collaboration with Starbucks to offer their coffee and beverages within its stores; however, this partnership concluded in September 2013 due to declining sales figures and customer dissatisfaction.
In May 2013, Crumbs joined forces with chef David Burke to introduce gourmet sandwiches and salads at select outlets; this venture was discontinued within a month because of insufficient sales.
September 2013 marked the debut of Crumbs Gluten Free in lower Manhattan, presenting gluten-free versions of their popular cupcakes and pastries.
February 2014 saw Crumbs collaborate with Pelican Bay Ltd. to create At-Home kits—comprising cupcake mixes and hot chocolate—distributed nationwide through club and craft retail stores.
The company terminated all customer-facing activities on December 19, 2016.
Financial status
Crumbs Bake Shop, publicly listed on NASDAQ, reached its peak in 2011 but experienced a steep downturn by 2013 caused by a $700,000 loss from Hurricane Sandy, intensified competition from local cupcake boutiques and grocery chains, coupled with declining revenue. To address financial challenges, the company secured $10 million via convertible promissory notes and planned closures of underperforming locations.
On July 8, 2014, Crumbs announced the immediate shutdown of all remaining stores and contemplated filing for bankruptcy. After enduring consecutive years of losses and depleted cash reserves, its shares were delisted from NASDAQ on July 1, resulting in defaults on certain debt obligations.
Shortly following closure, ownership rights were acquired by an investment group including Marcus Lemonis of The Profit fame and Fischer Enterprises, aiming to revive the chain with an expanded product lineup. The corporation filed for bankruptcy, pending court approval for the acquisition.
On August 26, 2014, the court authorized Crumbs to reopen approximately 24 outlets. The first reopened location launched in Manhattan on October 14, 2014.
Marcus Lemonis divested his interest in September 2015 after the venture failed to meet expectations. By April 2016, Crumbs shares had fallen below $.01 per share. In December 2016, all stores closed once again; however, plans were announced to relaunch the original Manhattan store by 2025 with ambitions to expand to around 100 locations.
External links
- United States Bakeries
- American Enterprises Founded in 2003
- Retail Businesses Founded in 2003
- Food and Beverage Firms Established in 2003
- Food Producers Located in New York City
- Publicly Listed Companies Headquartered in New York City
- Upper West Side Neighborhood
- 2003 Foundings in New York City
- Companies that Declared Chapter 11 Bankruptcy in 2014
- American companies established in 2003
- Companies of the United States by year of establishment