Tags: crumbs | closing | stores | cupcakes

Crumbs Closing Stores: All 65 Locations in 12 States and DC to Shutter

Image: Crumbs Closing Stores: All 65 Locations in 12 States and DC to Shutter

By    |   Tuesday, 08 Jul 2014 07:07 AM

Floundering cupcake shop operator Crumbs announced it is closing all 65 stores in 12 states and Washington, D.C., a week after the struggling company was delisted from the Nasdaq.

The New York City-based company said all employees were notified of the closures Monday. A representative for Crumbs could not immediately say how many workers were affected or how many stores it had remaining on its last day, reported The Associated Press.

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"Regrettably Crumbs has been forced to cease operations and is immediately attending to the dislocation of its employees while it evaluates its limited remaining options," the company said in an emailed statement. That will include filing for Chapter 7 bankruptcy liquidation.

Crumbs was founded in 2003 and went public in 2011, selling giant cupcakes in flavors including Cookie Dough and Girl Scouts Thin Mints. More recently, however, it had been suffering from a steep decline in sales. For the three months ending March 31, Crumbs Bake Shop Inc. reported a loss of $3.8 million, steeper than the loss of $2 million from the same period a year ago.

The company had warned in a filing with the Securities and Exchange Commission this past May that it "may be forced to curtail or cease its activities" if its operations didn't generate enough cash flow.

As of the end of last year, Crumbs listed about 165 full-time employees and about 655 part-time hourly employees working in its stores.

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Floundering cupcake shop operator Crumbs announced it is closing all 65 stores in 12 states and Washington, D.C., a week after the struggling company was delisted from the Nasdaq.
crumbs, closing, stores, cupcakes
263
2014-07-08
Tuesday, 08 Jul 2014 07:07 AM
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