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Crumbs files for Chapter 11; could be acquired

Published on NewsOK Modified: July 14, 2014 at 11:26 am •  Published: July 14, 2014

NEW YORK (AP) — An investor group that includes investor and reality TV star Marcus Lemonis said it plans to acquire Crumbs Bake Shop out of bankruptcy.

Crumbs, which filed for Chapter 11 bankruptcy reorganization Friday in New Jersey, said it agreed to be acquired by Lemonis and Fischer Enterprises, the company behind Dippin' Dots ice cream. It hopes to close a sale in about 60 days pending approval from the bankruptcy court.

Lemonis, the CEO of RV retailer Camping World and star of CNBC's "The Profit," plans to provide financing to Crumbs with the ultimate goal of acquiring the company. Fischer Enterprises made $5 million in credit available to Crumbs in January.

In a press release on Friday, Lemonis and Fischer Enterprises said they want to create a privately held Crumbs company and reopen its stores. They said they would take the company beyond just cupcakes, possibly adding items such as ice cream and popcorn and other snacks, to attract more customers.

Last Monday Crumbs Bake Shop Inc. closed all of its remaining stores after a string of losses. On Thursday the New York company said it was exploring its options with "interested parties."