The Wall Street Journal reports that a U.S. Bankruptcy Court in New Jersey gave its stamp of approval to a joint venture to acquire Crumbs’ assets in exchange for the cancelation of $6.5 million in debt.
Just a week after Crumbs shuttered its stores in early July, Marcus Lemonis, star of reality TV’s The Profit, and snack-maker Fischer Enterprises announced plans to use the Crumbs name to sell their own non-Crumbs’ retail products – as well as the once-popular cupcakes.
Before anyone can consider the new joint venture the savior of Crumbs, the WSJ reports that court filings show Fischer Enterprises had actually provided a $5 million investment to Crumbs in January, but the out-of-court restructure never took place resulting in Crumbs entering bankruptcy.
Following Tuesday’s court approval, Scott Fischer, COO of Fischer Enterprises, announced that the company will reopen about two dozen Crumbs locations in New York, Los Angeles, Chicago, Boston and Washington D.C.
Seven of those locations will reopen next month and the rest in the months following, but don’t expect to find any in your area mall. Under the restructuring plan, all mall locations in the Northeast will remain closed.
The stores will have a decidedly different appearance than those consumers previously visited. Although Crumbs cupcakes will still be prominently displayed, the shops will incorporate other food brands owned by the new investors. A full list of offered treats hasn’t been released, but Fischer Enterprises owns Dippin’ Dots, Doc Popcorn, Mr. Green Tea Ice cream, and Sweet Pete’s Candy, while Lemonis has stake in several other dessert companies.
Crumbs Bake Shop to Reopen Stores After Court Approval [The Wall Street Journal]
by Ashlee Kieler via Consumerist
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