Tuesday, July 15, 2014

Crumbs will go on!

The foodie world was aghast at the recent announcement that Crumbs Bake Shop was closing all of its 48 locations. But it looks like the sweet cupcake kingdom will continue with news on Friday that Crumbs reached an agreement with Lemonis Fischer Acquision Company, LLC to secure financing for the chain's bankruptcy petition.

“We are very pleased to have reached this agreement with Lemonis and Fischer, after carefully evaluating opportunities to strengthen Crumbs’ financial position, in order to ensure a strong future for the Crumbs brand and business,” said Edward M. Slezak, Crumbs Chief Executive Officer and General Counsel in a news release on Friday. “ The steps we are taking today will allow us to continue to execute our business strategy, expand our licensing business and position ourselves to move toward a franchise store model. We remain saddened that we were forced to cease operations before this agreement was reached, but we strongly believe that pursuing this sale through the chapter 11 process is ultimately in the best interest of the Company and its stakeholders.”

“I truly believe in the Crumbs brand and am excited to help the Company enter into a new chapter in its history,” said Marcus Lemonis, host of CNBC’s The Profit series and CEO of Camping World and Good Sam Enterprises in Friday's news release  “I think there is tremendous opportunity to expand the Crumbs offering, build on the Company’s growth strategy and to leverage the synergies between Crumbs and other companies in my and the Fischers’ portfolio, such as Dippin’ Dots ice cream, Doc Popcorn, Wicked Good Cupcakes, Little Miss Muffin, Betty Lou’s snacks, a host of gluten-free baked goods, Matt’s Cookies, Pie King, Key West Key Lime Pies, Mr. Green Tea Ice Cream, Sweet Pete’s Candy and Coffee of Grace (Grace Hightower De Niro), as well as a new exciting product from an episode of the upcoming fall season of CNBC’s The Profit.” 

The first Crumbs bake shop opened in March 2003 on the Upper West Side of Manhattan and is well known for its innovative and oversized gourmet cupcakes and grew to encompass 10 states with nearly 50 stores.

So, fans of Crumbs' scrumptious cupcakes can breath a sigh of relief and they'll soon be able to get their sugar fix again at the two Chicago locations on Michigan Ave. and Madison.


1 comment:

  1. Well, that's a relief! I love those type of pastries and it would be a shame to lose them. Glad they've found a way to buttress their financial position, so that they can keep on giving us a taste of the good stuff. I mean, if they have a good grasp of the costs and benefits, then they should be able to keep their trade going. Good luck!

    Clyde Hudson @ Stewart Technologies

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