Is the great gourmet cupcake boom over?
Crumbs Bake Shop will close all of its 48 locations following its delisting from the Nasdaq last week, the Wall Street Journal reported. The specialty bakery chain had been in the process of closing unprofitable locations as part of a broader strategy to stem losses under new chief executive Edward Slezak. In March, Crumbs said it closed nine stores in the final quarter of 2013, six this year and had plans to shutter more, according to the Journal.
Crumbs’ website lists 48 stores in 10 states and the District of Columbia. The first Crumbs bakery opened on the Upper West Side in 2003. The company was purchased by a shell company in 2011 and went public the same year. The Nasdaq dropped the stock after its value per share fell below 30 cents, the Journal reported.
Just a few years ago, Crumbs was expanding aggressively, but the company’s profits have plummeted and cash reserves dwindled as the cupcake craze lost its appeal with consumers. [WSJ] — Tom DiChristopher