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Cupcake chain Crumbs Bake Shop closes stores in L.A., elsewhere
Cupcake chain Crumbs Bake Shop closes stores in L.A., elsewhere

Caving under losses, Crumbs Bake Shop Inc. has closed its high-end bakeries in Los Angeles and elsewhere after more than a decade of promoting the cupcakes that tapped the nation's sweet tooth. Financially, the nation's biggest cupcake chain recently lost its stock listing on Nasdaq and defaulted on about $14.3 million in financing. It lost $3.8 million in the first quarter, nearly twice the $2-million loss in last year's first three months. But a growing consumer distaste for rich desserts, especially ones like the opulent Crumbs cakes, also indicates a cooling market and possibly tougher times ahead for those bakeries that focus solely on cupcakes, analysts said. Stephanie Ellis, a...

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