It hasn’t been a sweet week for the Oklahoma City-based owners of Dippin’ Dots ice cream, which also owns a sizable chunk of the flailing cupcake chain Crumbs Bake Shop Inc.
Dippin’ Dots, had hoped to partner with Crumbs on co-branding, cross-branding and distribution of its flash-frozen ice cream pellets before the bake shop abruptly closed all of its stores on Monday.
An investment group led by Oklahoma City-based Chaparral Energy CEO Mark Fischer and son Scott Fischer purchased the Dippin’ Dots brand out of Chapter 11 bankruptcy in 2012.
The Fischers have also recently invested millions of dollars in the struggling Crumbs Bake Shop and are also majority shareholders in the company. The cupcake chain is a separate investment from Dippin’ Dots, and the Crumbs store closures will not affect the ice cream company, a spokesman for the Fischers said Tuesday.
“As a separate investment and business from Dippin’ Dots, the recent challenges at Crumbs have zero impact on Dippin’ Dots. Our Dippin’ Dot business is performing well with revenues up 22 percent in the past year,” Brent Gooden, a spokesman for Fischer Enterprises said in a statement. “Beyond noting the situation faced by Crumbs is an unfortunate development, Fischer Enterprises cannot comment further because a number of issues will need to be sorted out through a formal legal process.”
Crumbs Bake Shop notified employees this week that it would immediately close all of its remaining 48 stores in 10 states. New York City-based Crumbs’ stock was suspended by NASDAQ on July 1 for failing to maintain minimum stock listing requirements. The chain had no Oklahoma stores.