Crumbs Bake Shop Could Be Saved
To the shock of fans and employees, Crumbs Bake Shop abruptly announced it's closure on July 7, 2014. Since Crumbs was the largest specialty cupcake chain in the nation, this was a very unforeseen event. However, there may be hope for the giant cupcakes, who some believe couldn't compete with Georgetown Cupcakes or Magnolia Bakery.
However, now an investor group has announced its plans to aid the cupcake chain financially. The investor group includes the Fischer Family and Marcus Lemonis, who stars on CNBC's "The Profit" and is the Chairman and CEO of Camping World and Good Sam Enterprises. Lemonis intends to incorporate Sweet Pete's Candy, another one of his holdings, into the new Crumbs. After this announcement was made, Crumbs shares went from 3 cents to 43 cents.
"The company has limited cash, and we are trying to come up with a situation that allows the company to remain viable," Lemonis told the Los Angeles Times, "We are in the final stages of working on a plan to get the stores reopened and people rehired." Lemonis believes that the fatal flaw of Crumbs was that they only sold one product. He believes that instead of just selling huge, expensive desserts that the brand should expand its coffee offerings and turn Crumbs into a "sweets and snack shop." Lemonis said, "I, along with the potential other suitor, have investments in other cupcake, candy and dessert chains. I want to put pies, cookies, candies, and make it a dessert destination."
Image Credit: Bloomberg