To many, the crumbling of venerable cupcake bakery “Crumbs” came as a complete shock. To others, however, the company’s bankruptcy heralded the bursting of the cupcake-bakery bubble, signifying the end of the ongoing food trend in buttercream-frosted writing on the wall. But while you may have been ready to get on to the next over-hyped confection obsession (cough, frozen yogurt), don't stick a fork in that Crumbs cupcake just yet. The Wall Street Journal reports that as of Aug 26 the company won federal bankruptcy court approval for its plans to reopen, and could have shops running again by September.
Judge Michael Kaplan of a Newark, New Jersey-based bankruptcy court approved the sale of the franchise to storied food chain revivalist Marcus Lemonis and investing group Fischer Enterprises. The judge approved the plans and finalized the sale of Crumbs for roughly $6.5 million, in a deal that will also cancel the chain’s debts. Fischer Enterprises is known for its previous success in reviving Dippin’ Dots ice cream, while Lemonis currently hosts a reality television show that helps struggling businesses.
Immediately following Crumbs’ bankruptcy announcement in July of 2013, Lemonis offered $1 million to aid the struggling brand; the remaining $5.5 million was offered as a secure loan by Fischer Enterprises. While others were given the opportunity to outbid that partnership, they were ultimate unable to do so.
According to the plans, initially the investors will focus on opening locations in major markets like New York, Los Angeles, Chicago and Boston, opting to close down many of the mall-based locations it had opened throughout the last five years.
The investing group also plans to pad the offering of Crumbs with other brands that it currently owns. In addition to Dippin’ Dots, Key West Key Lime Pie and Sweet Pete’s food products are likely to be added to the stores stock.Almost sounds like Jurassic Park for once extinct fad foods, what could possibly go wrong?