This morning, an investor group announced plans to help bring Crumbs back to life. On Monday, the cupcake maker shuttered 48 stores across 10 states without any notice to employees. They were pulled from Nasdaq several weeks ago, as Nasdaq requires companies to have $2.5 million in shareholder equity, and they no longer qualified. Now, the cupcake empire strikes back.
The investor group includes the Fischer Family, as well as Marcus Lemonis, CEO of Camping World and Good Sam Enterprises. They will offer Crumbs financing, as a prelude to eventually acquiring the company. Lemonis plans to create a new sweets empire. He currently holds Sweet Pete's Candy, which will be folded into Crumbs 2.0.
Adding candy to the mix could do just the trick, as Crumbs CEO Ed Slezak attributed the fall of company to their "too narrow of an assortment" and "too tight a niche to attract a sufficient number of people." With more options, the brand would have more customers, and therefore more room for profitability.
Since news of the financing broke, Crumbs stocks skyrocketed +1,085.48%:
This article is from the archive of our partner The Wire.
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