Ending Soon! Save 33% on All Access

Crumbs Could Get Reprieve Thanks to Investor Group The recently shuttered cupcake chain could stay open with financing help from an investor group.

By Katie Little

This story originally appeared on CNBC

Shortly after shuttering its stores, Crumbs Bake Shop is close to securing financing from a prominent investor group.

An investor group that includes the Fischer Family and Marcus Lemonis, Chairman and CEO of Camping World and Good Sam Enterprises and star of CNBC's "The Profit," confirmed it plans to provide financing for the struggling cupcake chain as a prelude to an acquisition.

Read More: Cupcake shop Crumbs shuttering all its stores

Lemonis plans to incorporate other holdings, including Sweet Pete's Candy, into the new entity that contains Crumbs. Click here for the full Profit episode about Sweet Pete's.

On Monday, the gourmet bake shop closed all of its stores roughly one week after its shares were delisted from the Nasdaq stock exchange.

In a CNBC in-person interview in April, Crumbs CEO Ed Slezak placed part of the blame for the company's difficulty its flagship product, saying the cupcake is "too narrow of an assortment" and "too tight a niche to attract a sufficient number of people" daily.

Read More: Crumbs CEO on cupcake demand, bakery's future

Crumbs' rapid expansion coincided with a drop in cupcake demand. For the year ended in April, cupcake servings from retail shops fell 8 percent, according to market research firm The NPD Group.

After going public in 2011, Crumbs quickly expanded to 79 stores by early August with a sizable mall presence. Ahead of its delisting, the company had been aggressively closing underperforming stores and focusing on licensing efforts as it tried to turn around the business.

Read More: Last Crumbs cupcake? Bidding starts at $250

Katie Little is a news associate at CNBC.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Health & Wellness

Become Unrecognizable By the End of Summer With These 6 Habits

Summer is often a time of rest, relaxation and socializing. But, summer can also be a time for improving and living our best lives. Follow these six healthy habits and you're bound to make this summer one you'll never forget.

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Marketing

I Wish I Knew This About Google Before Trying My Growth Strategy

Smart digital marketers love to sharpen their pencils while optimizing ad campaigns. But, as you will learn in this article, there is such a thing as over-sharpening your pencil to the point it breaks when you press on it, putting the entire campaign into a death spiral.

Business Solutions

Help Your Business Excel with a Lifetime of Microsoft Office for $49.97

Invest in productivity and get Microsoft Office for life.

Business News

Google's New AI Search Results Are Already Hallucinating — Telling Users to Eat Rocks and Make Pizza Sauce With Glue

From pizza sauce recipes to fun facts, some AI search results need a fact-checker.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.