Alas, all good and sweet things must come to an end. Crumbs bakeshop, the largest cupcake specialty store chain in the U.S, which was started by husband and wife duo out of New York City and swiftly spread across the country as the cupcake craze and demand increased will cease all operations at end of business day Monday.
“Regrettably Crumbs has been forced to cease operations and is immediately attending to the dislocation of its devoted employees while it evaluates its limited remaining options,” Crumbs told the Wall Street Journal in a statement.
This should come as no surprise as they have shuttered a few Chicago based shops(River North and Loop) and their popularity seemed to have diminished as quickly as they arrived. I remember their splashy opening parties and that was really about all they did.
The shop first opened in March 2003 in Manhattan, N.Y. The company went public in 2011 but has been suffering as the cupcake boom has deflated, the Journal reports.
According to their March 2014 rep Reports Fourth Quarter 2013 Financial Results
The Company currently has 65 locations in 12 states and the District of Columbia
Fourth Quarter 2013 Highlights as Compared to Fourth Quarter 2012 Highlights:
Net sales increased 5.4% to $11.4 million.
Store operating weeks increased 32.4% to 973 from 735.
Gross profit increased 5.3% to $6.0 million.
GAAP net loss attributable to controlling and non-controlling interests was $(5.8) million compared to a net loss attributable to controlling and non-controlling interests of $(6.4) million.
Adjusted EBITDA1, a non GAAP measure, was $(2.7) million compared to $(1.8) million.
Store Closings
While Crumbs opened one store in the fourth quarter of 2013, it closed 9 underperforming stores in that same period. Year to date for 2014, Crumbs has closed an additional 6 underperforming stores. The Company hopes to complete the process of closing under-performing stores before the end of third quarter of 2014.
