Crumbs is Done
For the past half decade, New York’s cupcake bubble has expanded beyond any sort of logical economic equilibrium. But the writing has been on the wall for quite some time, and it seems that Crumbs Bake Shop is the first major casualty.
The New York based chain got its start in 2003, and has expanded to 70 locations in 12 states. In 2011, they went public and set aggressive plans to double its footprint by 2013 despite flagging same store sales and increasingly expensive operating costs. Last month, Crumbs’ auditor expressed a going concern (essentially a financial deathwatch) of their financial stability, and the company was de-listed from the NASDAQ shortly after. Crumbs has officially shuttered all locations as of Monday. (BI has a good timeline of events)
Like all crisis’s, there’s probably a lot of lessons to be learned – but thankfully there are many many other places to score a cupcake in Midtown.