Crumbs Bakeshop Closes Larchmont Location
Published on: July 9, 2014
With Crumbs Bake Shop Inc. delisted from the NASDAQ by the first of July, it came as little surprise to locals when the boulevard’s poorly rated cupcake shop announced its closing by the end of the business day on July 7th, Monday.
Photo taken in 2009
Address: 216 N Larchmont Blvd 90004
East side of street, south of Beverly
Right next to Rite Aid parking lot
What Exactly Happened to Crumbs Bakeshop?
Crumbs Bake Shop, once a leader in the gourmet cupcake market, experienced a significant decline leading to its closure and eventual relaunch.
Initial Success and Expansion
Founded in 2003 by Mia and Jason Bauer on the Upper West Side of Manhattan, Crumbs quickly gained popularity for its oversized cupcakes and unique flavors. By 2013, the chain had expanded to over 70 locations across the United States, becoming the largest cupcake vendor in the country.
Factors Leading to Decline
However, by mid-2011, Crumbs began facing challenges that contributed to its downfall:
- Market Saturation: The cupcake market became increasingly crowded, with many new competitors emerging after Crumbs’ initial success.
- High Operating Costs: The chain’s stores were often larger than necessary, leading to high rental costs that strained profitability.
- Changing Consumer Preferences: Analysts noted a decline in interest in gourmet cupcakes, leading to what was termed “gourmet-cupcake burnout” among consumers.
- Continued Expansion Despite Declining Sales: Despite falling sales figures, Crumbs continued to open new locations, which ultimately exacerbated its financial issues.
Closure and Bankruptcy
In July 2014, Crumbs announced it would close all remaining stores due to ongoing financial struggles and dwindling cash reserves. The company subsequently filed for bankruptcy and sought new ownership. An investment group led by Marcus Lemonis acquired the brand with plans to revitalize it.
Brief Revival
After restructuring, Crumbs reopened some locations in October 2014 but continued to struggle with performance issues. By December 2016, all stores closed permanently as the brand failed to regain its former success.
Relaunch
In 2022, after several years of inactivity, Mia and Jason Bauer decided to relaunch Crumbs under the name Original Crumbs Bakeshop. This new iteration focuses on online sales and delivery rather than traditional storefronts. The Bauers aimed to reconnect with their original customer base while adapting to modern consumer habits. They now offer their products through various online platforms and major supermarket chains, emphasizing a return to their roots with a kosher certification for their baked goods.The relaunch has been met with enthusiasm from former fans who remember Crumbs’ iconic cupcakes and are eager to see the brand thrive once more.
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