Rejoice, cupcake lovers: Crumbs won court approval Tuesday to begin reopening stores under new management that would expand the stores.
Crumbs will be sold to Dippin' Dots owner Fischer Enterprises and Marcus Lemonis, a CNBC reality show host who turns around struggling businesses, The Wall Street Journal reported. The approval cancels some of the company's $6.5 million debt.
This week we shall know the fate of @CrumbsBakeShop. Let's get people back to work. Unreal how people focus on things other than running biz— Marcus Lemonis (@marcuslemonis) August 18, 2014
Judge Michael Kaplan in U.S. Bankruptcy Court in Newark, N.J., granted approval.
"The court is pleased to see there will be employees going back to work, and that there will be certain landlords with continuing tenants," he said, closing Crumbs' Chapter 11 bankruptcy case.
Still, not all of the news is so sweet: Many of the bake shop's mall locations in the Northeast will remain closed, while it plans to expand stores in cities like New York, Los Angeles, Chicago, Boston, and Washington, D.C. The company says it will open seven Crumbs locations as early as next month.
To calm the fears of landlords questioning the company's viability, the Fischer-Lemonis group will also pump $600,000 into Crumbs to cover the first two months of rent. The move comes more than a month after Crumbs filed bankruptcy July 14, and will see Crumbs transition into a shop that sells sweets and snacks, instead of offering only its signature cupcakes.
This article is from the archive of our partner The Wire.
We want to hear what you think about this article. Submit a letter to the editor or write to firstname.lastname@example.org.