Get All Access for $5/mo

Cupcake Chain Crumbs Delisted From Nasdaq The largest cupcake chain in the U.S. is set to delist, after failing to meet stockholder equity requirement.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Looks like Crumbs is past its sell-by date.

In a regulatory filing Thursday, the cupcake chain announced it will be delisted from the Nasdaq on July 1.

The exchange's decision was a result of Crumbs' failure to meet the minimum $2.5 million stockholders' equity requirement, according to the Securities and Exchange Commission filing.

While Crumbs can appeal the Nadsaq's decision, with such a bleak outlook, the move seems unlikely. The largest cupcake shop in the U.S. has been struggling as the marketplace has become more crowded and as the cupcake fad has lost steam. In the first three months of this year, the company's net loss widened to $3.8 million from $2 million the same period a year ago. Sales were at $9.1 million, down 25 percent from a year ago.

Related: How the Coolhaus Founder Stayed Chill as One Food Truck Became a Frozen Treat Empire

At the time, Crumbs said it expected to record net losses in future periods. The company also stated that in the mere month and a half from the end of March to mid-May, seven underperforming stores closed.

Shares of Crumbs have plummeted in the three years since they debuted on the Nasdaq in June 2011 at $13.10. On Thursday, when the announcement was filed, shares were trading at 23 cents, and as of 1 p.m. ET on Friday, were down to 16 cents.

Crumbs, which has 65 locations nationwide, began as a single bakery in New York City in 2003 amid a veritable cupcake craze that spawned chains such as Sprinkles, Magnolia Bakery and Sweet Arleen's. Over a decade later, the future of sweet treats in America now seems to be set on finding the new trendy food, whether it be cinnamon rolls or ice cream sandwiches.

Related: Cinnaholic Says Cinnamon Buns Are the Next Cupcakes, And 'Shark Tank' Agrees

Kate Taylor

Reporter

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. 

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

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

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.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.