Just when the world thought Crumbs Bake Shop was gone for good, there still may be hope for the high-end cupcake chain.
One week after abruptly closing all stores nationwide, Crumbs announced that it has entered an asset purchase agreement with Lemonis Fischer Acquisition Company, LLC, which is a joint venture created by Marcus Lemonis LLC and Fischer Enterprises, LLC.
Lemonis Fischer Acquisition Company will acquire Crumbs’ business as a result of the chain’s voluntary Chapter 11 petitions filing in the United States Bankruptcy Court for the District of New Jersey.
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Under the terms of the asset purchase agreement, Lemonis Fischer Acquisition Company will own substantially all of Crumbs’ assets. The sale is expected to be completed in approximately 60 days, once Lemonis Fischer Acquisition Company receives the necessary approvals from the Bankruptcy Court.
Together, Lemonis Fischer Acquisition Company and Crumbs will evaluate the retail strategy moving forward and determine whether select locations will be reopened or if new locations will be built in the future.
Current CEO and General Counsel of Crumbs, Edward M. Slezak, will remain with the company throughout the process to ensure a smooth emergence and transition.
“We are very pleased to have reached this agreement with Lemonis and Fischer after carefully evaluating opportunities to strengthen Crumbs’ financial position in order to ensure a strong future for the Crumbs brand and business,” Slezak said. “The steps we are taking today will allow us to continue to execute our business strategy, expand our licensing business and position ourselves to move toward a franchise store model. We remain saddened that we were forced to cease operations before this agreement was reached, but we strongly believe that pursuing this sale through the Chapter 11 process is ultimately in the best interest of the company and its stakeholders.”
