- Pedestrians pass by a closed Crumbs Bake Shop Inc. store in New York on July 8.
- Bloomberg News
Crumbs Bake Shop next Tuesday will seek bankruptcy-court approval to sell its assets to television personality Marcus Lemonis and Dippin’ Dots owner Fischer Enterprises, who together plan to relaunch the shuttered cupcake chain.
Crumbs abruptly closed its doors in July and soon sought Chapter 11 protection. But within days Mr. Lemonis expressed interest in investing and reopening some stores. Although the company planned an auction, the offer from Mr. Lemonis and Fischer Enterprises—$6.5 million in debt-forgiveness—remained the only qualified bid.
Although the investors plan to relaunch the chain, the no-cash offer provides little in the way of recovery for unsecured creditors. But Crumbs lawyers said they’re trying to negotiate another form of recovery for this group.