After more than 10 years at the forefront of the cupcake craze, Crumbs Bake Shop Inc. shuttered its high-end bakeries a week after it lost its stock listing on Nasdaq and defaulted on about $14.3 million in financing.
Employees at its remaining Los Angeles store and 57 other stores in 12 states and the District of Columbia, as of a May regulatory filing, were notified of the closures Monday, the last day of business. A spokeswoman for the New York bakery did not say how many workers lost their jobs.
Crumbs opened in 2003 on the cusp of the cupcake craze and sold giant, specialty cupcakes in a variety of flavors such as red velvet, fluffernutter and smores.
The chain went public in 2011 at the peak of the trend, but more recently suffered from a steep slump in sales. For the first quarter this year, Crumbs reported a loss of $3.8 million, steeper than the $2-million loss in last year's first three months.
The company started closing its more unprofitable stores last year, including bakeries in Malibu, Glendale, Hollywood and Beverly Hills. The one remaining California location, a small, corner store on Larchmont Boulevard in Los Angeles, closed its doors Monday night.