Crumbs Bake Shop Is Closing Down All of Its Stores

Crumbs Bakeshop managing partner, Harley Bauer, carries of tray of cupcakes during the store's grand opening in Beverly Hills, Calif. on Thursday, Sept. 20, 2007.

Crumbs Bake Shop told employees that it would be closing all of its stores at the end of the business day on Monday, according to a spokesperson for the New York-based bakery chain.
"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," which could include a bankruptcy filing, a company spokesperson told The Wall Street Journal, which first broke the news.

Crumbs opened its first shop in 2003 in Manhattan, and eventually expanded across the United States. There are currently 48 stores open in 10 states and the District of Columbia, according to Crumbs' website. The company's two stores in Illinois are listed as "temporarily closed."
Crumbs went public in 2011 when there was a trend toward gourmet cupcakes. Since then, however, its financial performance has declined, with multiple years of losses and a shrinking cash supply, the WSJ reported. In March, the company announced that it closed nine "underperforming" stores in the fourth quarter of 2013. Crumbs also said it closed six stores at the start of this year, and hoped to close more by the end of the third quarter of 2014.
The Nasdaq Stock Market suspended trading of Crumbs shares on July 1, as the company failed to fulfill a requirement of either having a minimum of $2.5 million in shareholder equity, or "meeting benchmarks for its market cap or annual net profit," theWSJ reported.
Crumbs has not yet announced the store closures on its Twitter profile or Facebook Page, although many fans of the company are expressing their sadness on social media. At one point on Monday night, "Crumbs" was trending on Twitter in the United States.

Founded by Jason and Mia Bauer, who are husband and wife, Crumbs offered more than 50 varieties of cupcakes, according to its site.

Crumbs did not immediately respond to a request for comment.

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