Crumbs Bake Shop
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Crumbs Bake Shop is a
bakery A bakery is an establishment that produces and sells flour-based baked goods made in an oven such as bread, cookies, cakes, doughnuts, bagels, Pastry, pastries, and pies. Some retail bakeries are also categorized as Coffeehouse, cafés, servi ...
chain headquartered in
New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
. Founded in 2003 as a small
mom-and-pop Small businesses are types of corporations, partnerships, or sole proprietorships which have a small number of employees and/or less annual revenue than a regular-sized business or corporation. Businesses are defined as "small" in terms of being ...
style bakery on the
Upper West Side The Upper West Side (UWS) is a neighborhood in the borough of Manhattan in New York City. It is bounded by Central Park on the east, the Hudson River on the west, West 59th Street to the south, and West 110th Street to the north. The Upper We ...
of
Manhattan Manhattan ( ) is the most densely populated and geographically smallest of the Boroughs of New York City, five boroughs of New York City. Coextensive with New York County, Manhattan is the County statistics of the United States#Smallest, larg ...
by Mia & Jason Bauer, the company expanded to 79 locations in ten states (
New York New York most commonly refers to: * New York (state), a state in the northeastern United States * New York City, the most populous city in the United States, located in the state of New York New York may also refer to: Places United Kingdom * ...
,
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,
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,
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,
New Hampshire New Hampshire ( ) is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec t ...
,
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,
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,
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,
Maryland Maryland ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States. It borders the states of Virginia to its south, West Virginia to its west, Pennsylvania to its north, and Delaware to its east ...
, and
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) and
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Crumbs was the largest cupcake chain in the United States. It produced more than 50 varieties of gourmet cupcakes. Crumbs reopened on October 14, 2014 at its Broadway location in New York and other locations after a three-month shutdown, and then closed all of its reopened stores permanently in December 2016. The brand is now an online store.


Partnerships

On August 6, 2012, the company announced a partnership with
Starbucks Starbucks Corporation is an American multinational List of coffeehouse chains, chain of coffeehouses and Starbucks Reserve, roastery reserves headquartered in Seattle, Washington. It was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gor ...
to serve their brand of coffees, teas, and other assorted beverages. The partnership ended in September 2013 due to a sharp decrease in sales and customer satisfaction. On May 15, 2013, the company announced it had partnered with chef and restaurateur David Burke to begin marketing a new line of gourmet sandwiches and salads to be sold at select Crumbs locations. This partnership ended roughly a month later due to poor sales. On September 13, 2013, the company announced the planned opening of their first ever gluten-free store in
lower Manhattan Lower Manhattan, also known as Downtown Manhattan or Downtown New York City, is the southernmost part of the Boroughs of New York City, New York City borough of Manhattan. The neighborhood is History of New York City, the historical birthplace o ...
. Crumbs Gluten Free featured the same cupcakes, cookies, brownies and pastries that the brand is known for in gluten-free versions. On February 4, 2014, the company announced a partnership with Pelican Bay Ltd. to create a line of At-Home kits, including Crumbs Cupcake mixes, hot chocolate kits, cupcake-in-a-mug kits and "Colossal" cupcake kits. The line was sold at club and craft stores across the country. The company shut the doors for customers on December 19, 2016.


Financial status

Crumbs Bake Shop, a publicly traded business listed on
NASDAQ The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...
, reached its peak stock price in 2011. A one-time loss of US $700,000 due to
Hurricane Sandy Hurricane Sandy (unofficially referred to as Superstorm Sandy) was an extremely large and devastating tropical cyclone which ravaged the Caribbean and the coastal Mid-Atlantic (United States), Mid-Atlantic region of the United States in late ...
in combination with steadily declining sales due to competition from locally owned mom-and-pop cupcake shops as well as increased competition from grocery stores, caused a sharp decline in the company's prospects and stock price in 2013. Crumbs borrowed $10 million through convertible promissory notes and announced plans to close some underperforming stores in 2013. On July 8, 2014, the company announced it was immediately closing all of the remaining locations and evaluated its options, including a possible bankruptcy filing. Crumbs, which went public three years ago at the height of the gourmet-cupcake boom, has seen its financial outlook deteriorate amid several years of losses, a dwindling cash supply, and a food craze that is petering out. The company’s stock was delisted from the NASDAQ Stock Market on July 1, a development that the company warned would trigger a
default Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance), failure to satisfy the terms of a loan obligation or failure to pay back a loan ** Default judgment, a binding judgment in favor of eit ...
on some debt payments. Shortly after Crumbs closed its shops, an announcement was made that a deal had been reached to transfer the rights to the chain to an investment group including
Marcus Lemonis Marcus Anthony Lemonis (born November 16, 1973) is a Lebanese-American businessman, TV personality, and philanthropist. He serves as the chairman and CEO of Camping World, Good Sam Enterprises, and Beyond. Additionally, he is renowned for his rol ...
(of the
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reality show Reality television is a genre of television programming that documents purportedly unscripted real-life situations, often starring ordinary people rather than professional actors. Reality television emerged as a distinct genre in the early 1990s ...
'' The Profit'') and Fischer Enterprises. The group stated that their intentions were to rapidly reopen stores with more diverse offerings. As part of the agreement the existing corporation filed for
bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...
, and court approval was needed to finalize the deal. On August 26, 2014, Crumbs won court approval to start reopening its stores, intending to keep only about 24 stores open. On October 14, 2014, Crumbs reopened its first shop in Manhattan.
Marcus Lemonis Marcus Anthony Lemonis (born November 16, 1973) is a Lebanese-American businessman, TV personality, and philanthropist. He serves as the chairman and CEO of Camping World, Good Sam Enterprises, and Beyond. Additionally, he is renowned for his rol ...
sold his interest in the Crumbs retail stores in September 2015, as the baked-goods venture wasn't performing to expectations. In April 2016 the value of Crumbs stock had fallen to less than $.01 per share. In December 2016, Crumbs Bake Shop once again closed all its stores. Crumbs plans to open its first store in 2025 in Manhattan, New York City, with about 100 locations planned.


References


External links

*{{official website, http://www.crumbs.com/ Bakeries of the United States American companies established in 2003 Retail companies established in 2003 Food and drink companies established in 2003 Food manufacturers based in New York City Publicly traded companies based in New York City Upper West Side 2003 establishments in New York City 2014 establishments in New York City Companies that filed for Chapter 11 bankruptcy in 2014