Cupcake chain Crumbs in talks, could rise again
New York • Will cupcake chain Crumbs get new dough and rise again?
The New York company said it is in talks with "various interested parties" and could restructure its business days after closing its stores.
"We're pleased to be in talks with various interested parties that are allowing us to pursue all of our options for the business, which includes consideration of restructuring alternatives," CEO and General Counsel Edward Slezak said Thursday in a statement.
Crumbs was founded in 2003 and went public in 2011, selling giant cupcakes topped with M&Ms, cookie dough, and Girl Scout cookies. But the company has posted a loss for three straight years, and it warned in May that it might have to cease operations if it didn't generate enough cash flow.
In March it had 65 stores nationwide but couldn't say how many locations were left on Monday, when it closed all of its remaining stores. The company said Monday that it was considering options including a Chapter 7 bankruptcy liquidation.