| July 11
July 11 Crumbs Bake Shop Inc may get a
second chance if a bankruptcy judge approves a deal for the
owner of Dippin' Dots ice cream and the star of a reality
television show to buy and reopen the U.S. cupcake chain,
according to a court document.
Crumbs, which specialized in oversized cupcakes and went
public in 2011, shuttered its nearly 50 locations in 10 states
and the District of Columbia on Monday. It filed
for Chapter 11 bankruptcy on Friday.
Part of the group seeking to buy the chain is Marcus
Lemonis, star of CNBC reality show "The Profit" and known as the
"business turnaround king." He, along with Fischer Enterprises
LLC, the owner of Dippin Dots, would provide
debtor-in-possession financing and subsequently buy the cupcake
chain through a joint venture called Lemonis Fischer Acquisition
Co, according to the document.
They would reform Crumbs as a privately held company, reopen
its stores and resume operations.
Crumbs' existing line of cupcakes would remain a mainstay,
but would be supplemented by a "much improved" product mix to
appeal to a wider customer base, Scott Fischer, the chief
operating officer of Fischer Enterprises, said in a statement.
Fischer Enterprises bought Dippin' Dots out of
bankruptcy in 2012.
Fischer reported a 14.95 percent stake in Crumbs as of Dec.
30 and invested $5 million in January, according to filings with
the U.S. Securities and Exchange Commission.
New York-based Crumbs listed assets and liabilities between
$10 million and $50 million in the bankruptcy filing in New
The news follows less than a month after the NASDAQ
announced it would stop trading Crumbs, which hoped that the
frosted cake made famous by Magnolia Bakery in New York City and
"Sex and the City" could fuel growth at a nationwide chain.
Crumbs had seen a steep decline in profitability since its
debut on the market: In its quarterly report from March, the
company posted an accumulated deficit of $28.8 million.
The case is In re: Crumbs Bake Shop Inc, U.S. Bankruptcy
Court, District of New Jersey (Newark).
(Reporting by Ramkumar Iyer in Bangalore; Editing by Lisa