NEW YORK (
Crumbs Bake Shop
(CRMB) is no more. The publicly traded bakery announced it was shuttering operations at its stores Monday evening, giving employees little more than a days' notice.
The company has ceased operations as it evaluates its limited remaining options, one of which could include a bankruptcy filing, a spokesperson said in a statement.
Just over a decade ago when still a young upstart, Crumbs was on a sugar high, riding the crest of a boom in demand for gourmet cupcakes.
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However, with little diversity among its high-calorie offerings, New York-based Crumbs quickly began to slide. After listing in mid-2011, shares soared above $13 a share. Since then, they have cratered 99.7%, a response to bleeding profits and underperforming locations. At its most recent close, the stock was trading at 15 cents a share.
Over fiscal 2013 ended December, the company reported net losses attributable to stockholders of $15.2 million, nearly double a loss of $7.7 million a year earlier. That was even as sales climbed 5.4% to $47.2 million.
The Nasdaq delisted shares at the beginning of July after the company failed to meet the criteria of having a minimum $2.5 million in stockholder equity. The delisting triggered an event of default on $9.3 million in tranche notes and $5.1 million in unsecured notes.
--Written by Keris Alison Lahiff in New York.
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