Crumbs Bake Shop closes all stores as cupcake empire crumbles
World's biggest cupcake chain shuts all stores and could file for bankruptcy in the coming weeks
Crumbs Bake Shop, the largest cupcake chain in the world, has closed all of its stores and could be filing for bankruptcy in the coming days.
The New York-based cupcake empire said it would shut down its 48 stores across 10 states and the district of Columbia on Monday, the same day it notified employees they would be losing their jobs.
"Regrettably, Crumbs has been forced to cease operations and is immediately attending to the dislocation of its devoted employees while it evaluates its limited remaining options," the company said in a statement, telling the Wall Street Journal it is considering filing for bankrupcy.
The announcement comes just weeks after the company, which went public in 2011- when the cupcake craze was at its peak- halted trading and was de-listed from the American stock exchange, NASDAQ.
Employees only found out about the imminent closure when they showed up for work on Monday.
"Nobody knows anything or what to do, the employees are finding things out online or from customers coming in and asking us stuff," an employee told New York Daily News.
Founded by Jason Bauer, and his wife, Mia, in 2003 as a local bakery in New York, Crumbs became the largest cupcake chain in the world at one point baking more than a million cupcakes in 75 flavors every month.
However, in recent years, the company has seen sales slide amid concerns of a "cupcake" bubble, increasing competition from rival Magnolia of 'Sex and the City' fame, and the rise of the 'Cronut'- a croissant-doughnut hybrid that is hugely popular in the US.
Crumbs reported a loss of $18.2m (£10.6m) last year, on top of a $10.3m loss in 2012.
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