NEW YORK (TheStreet) -- Crumbs Bake Shop (CRMB) shares are skyrocketing up 1488.7% to 44 cents on Thursday following reports that an investment group led by Camping World CEO and host of the CNBC show "The Profit" Marcus Lemonis is putting together a financing and acquisition deal for the company.
The Nasdaq suspended trading of the stock on July 1 due to its failure to comply with a minimum stock holder equity requirement and on Monday the company announced that it was closing all of its stores.
The chain has posted $28.5 million in losses over the past two years due in part to competition from other high end cupcake stores.
"We're pleased to be in talks with various interested parties that are allowing us to pursue all of our options for the business, which includes consideration of restructuring alternatives," said Crumbs CEO Edward Slezak.
TheStreet Ratings team rates CRUMBS BAKE SHOP INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CRUMBS BAKE SHOP INC (CRMB) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself."