NEW YORK CITY—Crumbs Bake Shop has risen once again.
A $6.5 million bid—made by CNBC star Marcus Lemonis—has gone unchallenged, positioning the dessert purveyor to emerge from bankruptcy on Aug. 26, according to the New York Post.
Lemonis, the host of CNBC's “The Profit,” partnered with entrepreneurial firm Fischer Enterprises in the bid to become Crumbs' new owner: Lemonis Fischer Acquisition Co.
The pair decided to bite into the cupcake chain within days of its abrupt laying off all of its workers and closing all 48 shops in 10 states on July 7. By July 11, when Crumbs filed for bankruptcy, Lemonis Fischer had already stepped up with $1 million in financing to minimize damages the chain might suffer while its in Chapter 11.
That financing, coupled with a $5.5 million secured loan previously made to Crumbs by Fischer, became the basis of a “stalking-horse bid” that the public was invited to beat by noon on Aug. 19.
Michael Sirota, Crumbs' bankruptcy attorney, tells the Post he didn't expect further complications before approval of the final sale agreement in New Jersey bankruptcy court on Aug. 26.
During a recent appearance on CNBC, Lemonis laid out plans for Crumbs, which he said always was “meant to be a bake shop—not a cupcake shop.” Lemonis wants to expand Crumbs' product line, mostly with other brands he already owns. Cited as likely additions were Lemonis-owned Key West Key Lime Pie, Matt's Cookies, Mr. Green Tea and Sweet Pete's.
Lemonis added that his new co-partner, Oklahoma-based Fischer, would likely add its Dippin' Dots ice cream to Crumbs' line-up as well.
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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.
