NEW YORK CITY—It's the end of a sweet era.

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Crumbs Bake Shop Inc. has shuttered its 48 stores around thecountry after being delisted on the Nasdaq Stock Market and in theface of mounting debt. Based here, the company had stores across 10states and the District of Columbia.

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The Nasdaq Stock Market suspended trading of Crumbs shares July1, citing the company's failure to meet a requirement of eitherhaving at least $2.5 million in shareholder equity or meetingbenchmarks for its market cap or annual net profit, according tothe Wall Street Journal.

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The company's stock, which once traded at $13 per share, fellbelow 30 cents a share last month when Crumbs announced theanticipated delisting. Crumbs said in a regulatory filing Thursdaythat the trading suspension would trigger an event of default onJuly 6 of $9.3 million in senior secured convertible tranche notesand $5.1 million in unsecured notes.

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Around New York, the stores have good potential for future uses,retail guru Faith Hope Consolo, chairman of the retail practice atDouglas Elliman, tells GlobeSt.com.

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“The stores tend to be small but well located, so it's certainlyanother opportunity for a food purveyor such as a yogurt place orDunkin Donuts—assuming those vendors aren't already on a particularstreet—and they're big enough for a Teavana café.”

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Other possibilities Consolo mentions include Prêt A Manger or anexpanding chain called Just Falafel. “Trends change and evolve andstores open and close,” she says.

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Crumbs went public three years ago at the height of thegourmet-cupcake boom, notes the Wall Street Journal. Sincethen its financial performance has suffered as a result of severalyears of losses, a dwindling cash supply, and the dying down of afood trend that was started by the company.

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The baker posted a loss of $18.2 million last year, layered on aloss of $10.3 million in 2012, according to securities filings. Itscash on hand fell to $893,000 at the end of 2013, down from $6.3million the prior year.

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In March, Crumbs said it closed nine underperforming storesduring the last three months of 2013, shut six at the start of 2014and had more closures on the way.

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“Regrettably, Crumbs has been forced to cease operations and isimmediately attending to the dislocation of its devoted employeeswhile it evaluates its limited remaining options," the company saysin a statement to the Journal.

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Those options could include a bankruptcy filing, the spokeswomanadds.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.