In a sudden turn of events, cupcakes are no longer cool.
At least, that’s according to the NASDAQ, which delisted Crumbs Bake Shop last week, forcing the cupcakery to close down all 48 stores on Monday, July 7.
According to the New York Daily News, “Crumbs had been touted at the world’s largest gourmet cupcake business with 70 stores globally - but its sales had been falling off for several years.”
The cupcake bubble supposedly burst in 2013, but the fallout for Crumbs has been gradual since it went public in 2011.
“Crumbs posted a loss of $18.2 million last year, layered on a loss of $10.3 million in 2012, according to securities filings,” The Wall Street Journal reported. ”Its cash on hand fell to $893,000 at the end of 2013, down from $6.3 million the prior year.”
Founded in New York in 2003, the “mom and pop style” cupcake shop is best known for selling enormous, caloric cupcakes so decadent you can’t eat the whole thing in one sitting. One particularly infamous example is the Blackbottom Cheesecake Brownie Cupcake at 1,090 calories, selling for $4. Now, consumers might never get a chance to sink their teeth into such a thickly frosted cupcake ever again.
“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,” Crumbs told The Wall Street Journal.
Despite desperate attempts to keep up with the latest food fads — like gluten-free baked goods and the croissant-doughnut craze — Crumbs is shutting down.
Brooklyn store manager Kareem Wegman told The Wall Street Journal that Crumbs employees would not receive pay after July 7.
“I just paid rent,” Wegman said. “I wouldn’t have paid rent if I knew I was being fired.”