The Oklahoma City owners of Dippin’ Dots ice cream together with the chairman and CEO of Camping World won court approval on Tuesday to purchase cupcake chain Crumbs Bake Shop Inc. and reopen some stores.
The investor group, led by Oklahoma City-based Chaparral CEO Mark Fischer and son Scott Fischer, and Camping World executive Marcus Lemonis will take over the company in exchange for the cancellation of about $6.5 million in debt.
Attempts to reach a representative for the Fischers for comment were unsuccessful on Tuesday.
Lemonis, who also stars in a CNBC reality series called “The Profit,” hopes to revive the cupcake company by broadening the business’s product offerings.
Crumbs abruptly closed its 48 stores in July and filed for Chapter 11 bankruptcy, a casualty of too-rapid expansion as the cupcake fad of the mid-2000s began to grow stale.
The new ownership group will seek to reopen about two dozen of the shuttered bakeshops. Crumbs had no Oklahoma stores.
The Fischers also purchased the Dippin’ Dots brand out of Chapter 11 bankruptcy in 2012 and have since invested about $16.7 million into the ice cream company and boosted sales growth by about 30 percent, according to an affidavit from Scott Fischer filed with the court.
In July, Dippin’ Dots also acquired Colorado-based snack-maker Doc Popcorn for an undisclosed sum. Doc Popcorn has about 83 stores in the United States.
Crumbs is “able to sell products beyond the Crumbs brand and therefore, able to increase the revenue per square foot of each of its stores,” Fischer said in the court filing.
Prior to the bankruptcy filing, the Fischers had said in regulatory filings that they hoped to combine Crumb’s marketing and sales efforts with Dippin’ Dots.
Mark Fischer, Fischer Enterprises LLC, and Fischer Investments LLC entities controlled by Mark Fischer own 56 percent of Crumbs’ outstanding stock, according to the company’s most recent proxy filing.