Crumbs Bake Shop Crumbles, Closes Over 50 Locations
Photo by Rachel Kramer Bussell
Last week, they defaulted on $14.3 million in financing and lost their listing on the NASDAQ. This week, they’re informing hundreds of employees that they’re out of work. Crumbs Bake Shop is closing its doors.
According to the Los Angeles Times, the writing has been on the wall for the cupcake chain for some time:
The chain went public in 2011 at the peak of the trend, but more recently suffered from a steep slump in sales. For the first quarter this year, Crumbs reported a loss of $3.8 million, steeper than the $2-million loss in last year’s first three months.
The company started closing its more unprofitable stores last year, including bakeries in Malibu, Glendale, Hollywood and Beverly Hills. The one remaining California location, a small, corner store on Larchmont Boulevard in Los Angeles, closed its doors Monday night.
Crumbs has yet to comment on their official Twitter account. Their latest tweet is from June 16:
Nothing beats Monday morning blues like chocolate, or chocolate and peanut butter, or just more… https://t.co/AiIDZNPtJR
— Crumbs Bake Shop (@CrumbsBakeShop) June 16, 2014
One opportunistic man is hoping to capitalize on the closures. He’s selling what he claims to be the “Last Cupcake From Crumbs Bake Shop” on eBay. The bidding is up to $250. Got a few hundred lying around? Go and get yourself a piece of sugar-filled memorabilia.