"A minute on the lips; A lifetime on the hips"
Although Americans are becoming more health conscious, our thirst for sweets has not diminished completely. The news of Crumbs Bake Shop's closings has spread like wildfire, and even has people participating in price gouging and selling the high end cupcakes to the highest bidder on social platforms. But this morning, Crumbs fans got an even bigger surprise. After notice of the chain quickly closing its doors, news broke earlier that an investor has stepped up in an effort to save the cupcake chain. According to CNBC, an investment group that includes Marcus Lemonis of the hit show "The Profit" has announced that they plan to provide financing as a prelude to an acquisition of the bakery chain.
This news comes after the chain was dropped from NASDAQ on July 1st because the company no longer met NASDAQ listing requirements. After the announcement today by Lemonis, the price of shares of Crumbs Bake Shop have soared tremendously. It is said that Lemonis will be providing in depth details on his plans for the company this afternoon at 1pm on CNBC's "Power Lunch".
Questions still arise as to how Lemonis will turn the company around. Many have speculated that the downfall of the chain comes from an expansion that occurred too rapidly for its market. And with increased competition from chains like Georgetown Cupcakes and other private bakeries, Crumbs was faced with trying to dominate a very small niche and spread their success amongst a dozen or so stores nationwide; whereas chains like Georgetown Cupcakes remained small with only a couple of local stores. Only time will tell if Lemonis and his team can revive the cupcake brand.