Company type | Public |
---|---|
OTC Pink No Information: CRMBQ | |
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) [1] |
Website | Crumbs Bake Shop |
Crumbs Bake Shop was a bakery chain headquartered in New York City. Founded in 2003 as a small mom-and-pop style bakery on the Upper West Side of Manhattan by Mia & Jason Bauer, the company expanded to 79 locations in ten states (New York, Illinois, Virginia, Connecticut, New Hampshire, Massachusetts, New Jersey, Rhode Island, Maryland, and California) and Washington, D.C. [2]
Crumbs was the largest cupcake chain in the United States. [3] It produced more than 50 varieties of gourmet cupcakes. [4] Crumbs reopened on October 14, 2014 at its Broadway location in New York and other locations after a three-month shutdown, and then closed all of its reopened stores permanently in December 2016.
On August 6, 2012, the company announced a partnership with Starbucks to serve their brand of coffees, teas, and other assorted beverages. The partnership ended in September 2013 due to a sharp decrease in sales and customer satisfaction. [5]
On May 15, 2013, the company announced it had partnered with chef and restaurateur David Burke to begin marketing a new line of gourmet sandwiches and salads to be sold at select Crumbs locations. [6] This partnership ended roughly a month later due to poor sales.
On September 13, 2013, the company announced the planned opening of their first ever gluten-free store in lower Manhattan. Crumbs Gluten Free featured the same cupcakes, cookies, brownies and pastries that the brand is known for in gluten-free versions. [7]
On February 4, 2014, the company announced a partnership with Pelican Bay Ltd. to create a line of At-Home kits, including Crumbs Cupcake mixes, hot chocolate kits, cupcake-in-a-mug kits and "Colossal" cupcake kits. The line was sold at club and craft stores across the country. [8] The company shut the doors for customers on December 19, 2016.
Crumbs Bake Shop, a publicly traded business listed on NASDAQ, reached its peak stock price in 2011. A one-time loss of US $700,000 due to Hurricane Sandy in combination with steadily declining sales due to competition from locally owned mom-and-pop cupcake shops as well as increased competition from grocery stores, caused a sharp decline in the company's prospects and stock price in 2013. [1] Crumbs borrowed $10 million through convertible promissory notes and announced plans to close some underperforming stores in 2013. [1]
On July 8, 2014, the company announced it was immediately closing all of the remaining locations and evaluated its options, including a possible bankruptcy filing. [9] Crumbs, which went public three years ago at the height of the gourmet-cupcake boom, has seen its financial outlook deteriorate amid several years of losses, a dwindling cash supply, and a food craze that is petering out. The company’s stock was delisted from the NASDAQ Stock Market on July 1, a development that the company warned would trigger a default on some debt payments. [10]
Shortly after Crumbs closed its shops, an announcement was made that a deal had been reached to transfer the rights to the chain to an investment group including Marcus Lemonis (of the CNBC reality show The Profit ) and Fischer Enterprises. The group stated that their intentions were to rapidly reopen stores with more diverse offerings. [11] As part of the agreement the existing corporation filed for bankruptcy, and court approval was needed to finalize the deal. [12]
On August 26, 2014, Crumbs won court approval to start reopening its stores, intending to keep only about 24 stores open. [13]
On October 14, 2014, Crumbs reopened its first shop in Manhattan.
Marcus Lemonis sold his interest in the Crumbs retail stores in September 2015, as the baked-goods venture wasn't performing to expectations. [14]
In April 2016 the value of Crumbs stock had fallen to less than $.01 per share. In December 2016, Crumbs Bake Shop once again closed all its stores, this time permanently.
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