Crumbs Bake Shop has not completely crumbled to the ground just yet, despite recent announcements that they would be closing their remaining 48 locations this past week. In efforts to save the scraps of the dessert company, Marcus Lemonis, chairman and chief executive of Camping World and Good Sam Enterprises, as well as star of CNBC’s The Profit, joined with Fischer Enterprises—the same company that bought Dippin’ Dots—to make efforts to buy and save the once-thriving cupcake business.
Lemonis took to Twitter to hint at his plans. Responding to news that the bake shop was closing, he wrote: “Stay tuned. Not so fast.” Later, he told The Los Angeles Times, “[The] company has limited cash, and we are trying to come up with a situation that allows the company to remain viable. We are in the final stages of working on a plan to get the stores reopened and the people rehired.” While he told the New York Daily News that the deal is “not fully baked yet,” it seems cupcake company will be given one last chance.
Prior to the news about possible investors in the dying company, shares were at a low of 3 cents, yet upon the rumors, by 2:30 on Thursday, July 10, the stock increased over 1,300 percent. While that might seem monumental, the shares still went for a mere 43 cents, as opposed to $13 at their peak in 2011.
Business turnaround experts are skeptical about whether these possible investors can save the ailing company. Craig Garthwaite, professor of management and strategy at Kellogg School of Management told Forbes: “Crumbs as a standalone entity, 50 cupcake shops, is not worth saving. I don’t have high hopes for it, but it’s a better plan than they have now.”