Discussion in 'The Howard Stern Show' started by skylarbrie, Jul 13, 2014.
a private investor(s) has agreed to rescue the company from bankrupcy...stay tuned for updates
The Crumbs cupcake lives another day.
On Friday evening, Marcus Lemonis, the chairman and chief executive of Camping World and Good Sam Enterprises and star of the CNBC reality show “The Profit,” and Fischer Enterprises announced that they had signed an agreement to provide financing to Crumbs Bake Shop, the struggling cupcake chain. Reports about a potential deal first surfaced on Thursday.
The move came just days after Crumbs said it wasclosing all of its stores and less than two weeks after the Nasdaq stock market suspended trading of the company’s stock. Crumbs voluntarily filed for Chapter 11 bankruptcy protection on Friday.
Under the terms of the agreement, the investor group has provided pre-petition financing to help Crumbs complete the bankruptcy process. Subject to court approval, the group plans to acquire Crumbs’s assets, creating a privately-held company and reopening stores.
“Our goal is to create a viable business model by making Crumbs the nation’s ‘sweet and snack’ destination,” Mr. Lemonis said in a statement.
Earlier on Friday, Mr. Lemonis announced a partnership with another cupcake company, Wicked Good Cupcakes, to expand its product line from cupcakes in jars to other baked goods.
“Fischer Enterprises and Lemonis continue to view the Crumbs brand as being well established in the marketplace with a loyal customer base,” Scott Fischer, the chief operating officer of Fischer Enterprises, said in a statement. Crumbs cupcakes “will be supplemented by a much improved product mix to broaden its appeal to a larger customer base,” he added.
Fischer Enterprises, which bought Dippin’ Dots out of bankruptcy in 2012, previously provided Crumbs with a $5 million loan in January.
Founded in 2003 by Jason Bauer, and his wife, Mia, Crumbs became best known for its signature four-inch cupcake in flavors like cookie dough and milkshake. The company went public on the Nasdaq stock market in 2011, at the height of the gourmet cupcake craze.
When the company went public, it had 34 stores in six states. Mr. Bauer said at the time that he planned to expand to 200 stores by 2014.
But as other high-end cupcake stores began expanding across the country, the market became glutted. Crumbs reported declining revenue, posting an $18.2 million in 2013, on top of the $10.3 million loss it posted in 2012, according to filings with the Securities and Exchange Commission.
Company lives on but people owed money get fucked?
Remember when Artie used to eat devil dogs like tic tacs?
The cupcake business is not going to somehow get popular again. I'm sure some of those locations were making money so keep those open and close the rest. I'd love to meet the guy that thought opening so many locations so quickly was a good idea in the first place.