The Real Deal New York

Auction dud leaves Lemonis clear path to pick up Crumbs

Some of bankrupt chain's outlets -- in NYC or elsewhere -- could reopen under new ownership
August 20, 2014 01:00PM

Chicago millionaire and CNBC host Marcus Lemonis, along with Fischer Enterprises, is close to resurrecting Crumbs Bake Shop following a bankruptcy auction yesterday in which no other bidders emerged.

Lemonis Fischer Acquisition Company is now set to receive approval Tuesday in New Jersey Bankruptcy Court for a final sale agreement, the New York Post reported. The investor group made a $6.5 million credit bid, followed by no others.

Lemonis and Fischer jumped at buying Crumbs just days after the cupcake chain filed for Chapter 11 bankruptcy and abruptly shuttered all 48 of its stores in the U.S. in July. The bidders had $1 million in financing ready, as well as $5.5 million secured loan previously made to Crumbs.

Some of the remaining spaces in New York City and elsewhere might reopen under the new ownership, which said it plans to incorporate other brands it owns, like Sweet Pete’s Candy and Green Tea Ice Cream, to create multi-brand dessert shops. Several coffee and other non-cooking food retailers with a more recurring customer base have expressed interest in the space in almost all the locations, brokers said.

“Inserting other concepts is not necessarily a formula for success,” Josh Siegelman, associate broker at Winick Realty, told The Real Deal last month. “It’s likely going to take away from the brand.” [NYP]Mark Maurer