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Bye, Cupcake: Crumbs Suddenly Folds, Closes All Stores

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If you enjoyed those huge, delectable cupcakes from Crumbs Bake Shop that came in a variety of specialty flavors, hopefully you got your fill before yesterday. The bakery chain has crumbled, closing all of its stores nationwide.

Employees of the trendy cupcake and coffee shop were notified by phone on Monday that all locations would shut down by the end of the workday. The bakery, which has 48 stores in 10 states, had already been closing select locations in recent months. The shut down comes a week after Nasdaq removed the struggling cupcake shop company from its list.

The New York-based bakery was founded in 2003. It was best known for their signature flavor cupcakes, including Cookie Dough, White Chocolate Cupcake, Oreo, and Girl Scouts Thin Mints. Despite their yummy treats and exquisite variety, the brand had been suffering from a steep decline in sales. For the three months ending March 31, Crumbs Bake Shop Inc. reported a loss of $3.8 million, steeper than the loss of $2 million from the same period a year ago.

At the end of last year, Crumbs listed 165 full-time employees and about 655 part-time, hourly employees working in its stores.


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