Crumbs Buyer's Bid Goes Unchallenged as Chain Prepares to Emerge From Bankruptcy
In a speedy turnaround, Crumbs is about to emerge from bankruptcy with new owners.
Lemonis Fischer Acquisition Co.'s $6.5 million bid for Crumbs Bake shop went unchallenged on Tuesday, the New York Post reports. The final sale of the cupcake chain is set to be approved in New Jersey bankruptcy court on Aug. 26.
Lemonis Fischer is a joint venture by CNBC star Marcus Lemonis and investment company Fisher Enterprises, which is also the owner of Dippin' Dots.
The two investors first announced their plan to buy the cupcake chain in July, a week after Crumbs abruptly closed all its stores. The public was offered the chance to beat Lemonis Fischer's bid of $1 million in financing to minimize damages plus a $5.5 million secured loan by noon on Aug. 19.
Crumbs' post-bankruptcy revival promises to be a different beast than the chain that was once was the biggest cupcake chain in America. Only 27 of Crumbs' 48 stores -- at most -- will reopen under the new ownership.
Those that do will likely be very different than their earlier iterations. Lemonis Fischer is pushing for Crumbs to follow the example of another formerly bankrupt sweets chain, TCBY and Mrs. Fields, by exploring co-branding opportunities with the duo's other products. The pair has plenty of brands to choose from: in addition to Fischer's ownership of Dippin' Dots, Lemonis's brands include Key West Key Lime Pie, Matt's Cookies, Mr. Green Tea and Sweet Pete's.
While it looks like an uphill battle for Crumbs, Lemonis at least seems excited for the challenge. "WILL work for CRUMBS !!!" the host of the CNBC show The Profit tweeted on Wednesday. "Launching baker of the month competition later this year to be featured in store."
Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor.