Tuesday, July 08, 2014

Crumbs Bake Shop Closes All Of Its Locations

A chain of New York-based cupcake shops that had as many as six locations in the Boston area at one point has shut down all of its stores.

Business Insider is reporting (via the Wall Street Journal) that Crumbs Bake Shop closed every one of its locations on Monday, including shops on Federal Street in Boston's Financial District at the Prudential Center in the Back Bay, and at the Natick Mall in Natick. The article mentions that the chain ceased trading on the NASDAQ at the beginning of the month due to a failure to meet the minimum stockholders equity requirement and that it could end up filing for bankruptcy.

Crumbs Bake Shop started out in New York City in 2003, eventually growing to more than 50 stores mainly on the east and west coasts. In addition to the three Boston-area locations mentioned above, there had also been shops at the Burlington Mall in Burlington, the North Shore Mall in Peabody, and the South Shore Plaza in Braintree, all of which ended up closing down.

Thanks to VH1 host Nik Carter for initially bringing this to our attention.

[July 9 update: The Commercial Observer site states that there is already some interest in the spaces vacated by Crumbs Bake Shop, with Max Brenner apparently looking at multiple locations. According to the article, Sam Borgese (the CEO of Max Brenner International) says that the chain of chocolate bars "is interested in a number of Crumbs locations within its current markets of Washington D.C., Philadelphia, New York City and Boston" and that they "are specifically looking at location sizes that fit our pure chocolate bar concept."]

[July 11 update: CNBC mentions that Crumbs may not be dead yet, as a group of investors are looking to provide financing that would ultimately result in their acquiring the chain. (Potential investors include Marcus Lemonis, who is the Chairman/CEO of Good Sam Enterprises and Camping World as well as an CNBC host, along with the Fischer Family.)]

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