Boston, MA 07/11/2014 (wallstreetpr) – Crumbs Bake Shop Inc (OTCMKTS:CRMB) closed all of its high-end bakeries following years of stress to make money in a swarming market. The New York-based company mentioned in an email statement that it had undertaken the decision to shutter its stores and seize the operations under pressure. Crumbs have been reported to act promptly to the displacement of its committed employees while it analyses its remaining alternatives.
Crumbs suffered a loss:
The cupcake chain experienced default on approximately $14.3 million in financing. Crumbs Bake Shop Inc (OTCMKTS:CRMB) had already foregone tens of millions of dollars and is continuing with default of more than $14 million. According to a recent update, the company is developing a plan to save its business.
The CEO stated:
On July 10, 2014 Crumbs CEO, Edward Slezak commented that Crumbs Bake Shop Inc (OTCMKTS:CRMB) is in discussion with interested parties as it plans its further steps. Slezak added that the company is aware that lot of people has an emotional association to the company and its products. Also, the CEO added that it is delighted to be in discussion with various interested parties, which are permitting Crumbs to follow its alternative for the business, including restructuring options.
The CEO looks for fresh sources to generate revenue:
Crumbs Bake Shop Inc (OTCMKTS:CRMB) sends a positive signal all around indicating that its tenure is not yet over even after the abrupt closing of its stores. Prior to closing the bakery stores, the CEO had been in search of fresh revenue sources, including franchise deals and licensing.
CEO failed to sail:
In spite of receiving a credit line of $5 million from Fisher Enterprises in January, the cupcake brand was not able to accumulate sufficient funds. Such a disappointing situation prompted the company to advance towards liquidation. On April 2014, the company had 65 locations in its pool. However, the number was downsized to 48 later on, and the remaining locations shuttered this week.
