The Oklahoma City owners of Dippin’ Dots have teamed with the chairman of Camping World to buy Crumbs Bake Shop, a New York-based cupcake chain that closed its shops abruptly on Monday and filed Friday for bankruptcy protection.
Fischer Enterprises LLC, led by Scott Fischer, son of Chaparral Energy CEO Mark Fischer, bought Dippin’ Dots out of bankruptcy in 2012. Fischer Enterprises loaned $5 million to Crumbs Bake Shop earlier this year, and the Fischers are majority shareholders of Crumbs.
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.
The joint venture with Marcus Lemonis, who stars in a CNBC reality series called “The Profit,” is aimed at reviving the cupcake company by broadening the business’ product offerings.
“Fischer Enterprises and Lemonis continue to view the Crumbs brand as being well established in the marketplace with a loyal customer base. 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,” Scott Fischer, chief operating officer of the family’s investment company, said in a statement. “We are excited to join forces with business guru Marcus Lemonis to develop a plan that is designed to reshape the company and operate the new Crumbs for broader appeal.”
Under the agreement, the joint venture has secured financing to provide Crumbs with funding to complete its Chapter 11 filing. Lemonis Fischer Acquisition Co. pledged financing during the bankruptcy proceeding, with the intent of ultimately acquiring Crumbs’ assets, forming a new privately held Crumbs company, and re-opening some or all of its 48 stores in 10 states.
Lemonis said the new product offerings could include Dippin’ Dots, as well as other candies and snacks.
“Our goal is to create a viable business model by making Crumbs the nation’s ‘sweet and snack’ destination,” Lemonis said in a statement. The new offerings also will include “a new exciting product from an episode of the upcoming fall season of CNBC’s ‘The Profit.’”
“This is a great opportunity to join forces with Fischer Enterprises and the high level of business expertise and acumen they possess,” he said.