Cupcake Shop Crumbs Closes All Stores
Get Breaking News First
NEW YORK (WNEW/AP) — Crumbs says it is shuttering all its stores, a week after the struggling cupcake shop operator 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.
“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.
A press release from its website in March listed 65 locations, including eight in Maryland, Virginia and Washington, D.C. The District’s shops were located at Union Station, the corner of 11th and F streets NW, and near 19th and L streets NW. Crumbs also had stores in Columbia, Towson and White Marsh in Maryland, as well as in Clarendon and Tysons Corner in Virginia.
The website had not been updated with notification of the closures late Monday.
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.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)