Crumbs Bake Shop sale approved
Aug. 27, 2014
by Eric Schroeder
NEWARK, N.J. — Crumbs Bake Shop Inc. is back in business. The New York-based cupcake specialty store chain that announced in mid-July it was ceasing operations has received court approval to begin reopening stores as soon as next month under a new ownership team.
Judge Michael Kaplan in U.S. Bankruptcy Court of New Jersey on Aug. 26 approved the sale of Crumbs Bake Shop to Lemonis Fischer Acquisition Company, L.L.C., a joint venture created by Marcus Lemonis L.L.C. and Fischer Enterprises, L.L.C.
Marcus Lemonis, host of CNBC’s “The Profit” series and c.e.o. of Camping World and Good Sam Enterprises, said in July that he believes in the Crumbs brand and is excited to help the company enter the next chapter of its history.
“I think there is tremendous opportunity to expand the Crumbs offering, build on the company’s growth strategy and to leverage the synergies between Crumbs and other companies in my and the Fischers’ portfolio, such as Dippin’ Dots ice cream, Doc Popcorn, Wicked Good Cupcakes, Little Miss Muffin, Betty Lou’s snacks, a host of gluten-free baked goods, Matt’s Cookies, Pie King, Key West Key Lime Pies, Mr. Green Tea Ice Cream, Sweet Pete’s Candy and Coffee of Grace (Grace Hightower De Niro), as well as a new exciting product from an episode of the upcoming fall season of CNBC’s ‘The Profit,’” Mr. Lemonis said.
Lemonis Fischer Acquisition Co. and Crumbs are expected to evaluate the retail strategy with the goal of reopening select locations or opening new locations in the future.
Crumbs was founded in 2003 and went public in 2011. The company opened to much fanfare, but more recently had been suffering from a steep decline in sales and income. Crumbs sustained a loss of $15,261,000 in the year ended Dec. 31, 2013, which compared with a loss of $7,695,000 in fiscal 2012.
On July 7, Crumbs announced it had closed all its stores. The move came a week after the company was delisted from the Nasdaq. On July 10, media reports surfaced indicating that an investor group planned to revive the brand. The news led to a surge in the company’s share price, which jumped as high as 55c per share on July 10 after opening at 3c per share. The company’s stock moved up further on July 11, getting as high as 75c before closing at 65c.