Much to the surprise of cupcake aficionados around the nation, the bakery, known for its oversized goodies, unexpectedly shuttered all its retail locations on July 7.
Late Friday brought good news for the company, however, when a group of investors agreed to buy the business, with the help of Marcus Lemonis, owner of Dippin' Dots ice cream, and Fischer Enterprises, L.L.C.
"We are very pleased to have reached this agreement with Lemonis and Fischer after carefully evaluating opportunities to strengthen Crumbs' financial position in order to ensure a strong future for the Crumbs brand and business," said Edward M. Slezak, Crumbs Chief Executive Officer and General Counsel.
"The steps we are taking today will allow us to continue to execute our business strategy, expand our licensing business and position ourselves to move toward a franchise store model. We remain saddened that we were forced to cease operations before this agreement was reached, but we strongly believe that pursuing this sale through the chapter 11 process is ultimately in the best interest of the Company and its stakeholders," he added.
The deal comes as a part of Crumbs' bankruptcy filing, and the involved parties say they are evaluating retail strategy "with a goal of reopening select locations" or new locations in the future.