Crumbs Bake Shop, a national chain based in New York City with outlets in Danbury, Greenwich, Stamford and Westport, closed the doors of those stores and all of its 65 stores in a dozen states and Washington, D.C., Monday.
“Regrettably Crumbs has been forced to cease operations and is immediately attending to the dislocation of its devoted employees while it evaluates its limited remaining options,” the company said in a statement to The Wall Street Journal.
The publicly traded company was recently delisted from the Nasdaq exchange.
Options could include a bankruptcy filing, the company said. A call to the Westport Crumbs seeking comment was unsuccessful.
Crumbs was founded in Manhattan in 2003 and went public in 2011. It sold oversized cupcakes, sometimes with curious twists like “Cookie Dough” and “Girl Scouts Thin Mints” varieties.
For the three months ending March 31, Crumbs Bake Shop Inc. reported a loss of $3.8 million, steeper than the loss of $2 million from the same period a year ago, according to The Associated Press.
The company said in a Securities and Exchange Commission filing in May that it “may be forced to curtail or cease its activities” if its operations failed to generate enough cash.
As of the end of last year, Crumbs listed 165 full-time employees and 655 part-time employees working in its stores. A breakdown of layoffs by store was not available.
