Crumbs Bake Shop Inc (OTCMKTS:CRMB): Whould You Buy The Stock After Today’s Gap Down?
The cupcake just won’t die, and we were probably naive to ever think they would. Just days after announcing it would shutter all of its stores, Crumbs Bake Shop has gotten a super sweet deal that would save its iced confections from the bowels of Ebay. A joint venture has been created by CNBC reality show host Marcus Lemonis and the owner of Dippin’ Dots, Fischer Enterprises, that will bail out the sunken bakery and reopen some of its stores, reports the Wall Street Journal.
The investors plan to help Crumbs through its Chapter 11 filing and other financing needs with the plan to create the Lemonis Fischer Acquisition Company, a new privately held Crumbs company that will be responsible for reopening the stores. “Crumbs is known for its high-quality cupcakes, which will remain a mainstay in the new company but will be supplemented by a much improved product mix to broaden its appeal to a larger customer base,” explained Fischer Enterprises COO Scott Fischer. This will likely include other products owned by the two investors, including Dippin’ Dots, Doc Popcorn, Little Miss Muffin, Pie King and other entities that read like a mall food court mashup.
The bailout serves a double purpose for Lemonis, as his involvement in the Crumbs hail mary will serve as the basis for an upcoming episode of his show The Profit, where he helps fledgling small businesses with his money and his advice. “Our goal is to create a viable business model by making Crumbs the nation’s ‘sweet and snack’ destination,” according to Lemonis. There’s nothing like reality television to turn an ugly duckling into a swan.
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