Crumbs Bake Shop shut down all its stores at the close of business on Monday, according to a report in the Wall Street Journal. The cupcake calamity comes amid vanishing same-store sales and over-saturation of shops in certain areas during the fad for the frosted dessert.
Signs of danger were unmistakable: Nasdaq suspended trading of Crumbs shares last Tuesday for the company’s failure to have the required minimum of $2.5 million in shareholder equity.
“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,” the company said in a statement to the Journal. Filing for bankruptcy is one of the few options.