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Friday, July 11, 2014

U.S. cupcake chain Crumbs may reopen with new owners, (OTHER OTC: CRMB)

Crumbs Bake Shop Inc may get a second chance if a bankruptcy judge approves a deal for the owner of Dippin' Dots ice cream and the star of a reality television show to purchase and reopen the U.S. cupcake chain, according to a court document. Crumbs, which specialized in oversized cupcakes and went public in 2011, shuttered its nearly 50 locations in 10 states and the District of Columbia on Monday. It filed for Chapter 11 bankruptcy on Friday.Part of the group seeking to buy the chain is Marcus Lemonis, star of CNBC reality show "The Profit" and known as the "business turnaround king." He, along with Fischer Enterprises LLC, the owner of Dippin Dots, would provide debtor-in-possession financing and subsequently buy the cupcake chain through a joint venture called Lemonis Fischer Acquisition Co, according to the document.They would reform Crumbs as a privately held company, reopen its stores and resume operations.Crumbs' existing line of cupcakes would remain a mainstay, but would be supplemented by a "much improved" product mix to appeal to a wider customer base, Scott Fischer, the chief operating officer of Fischer Enterprises, said in a statement. Fischer Enterprises bought Dippin' Dots out of bankruptcy in 2012.

Crumbs Bake Shop, Inc. (CBS) is engaged in the business of selling a wide variety of cupcakes, cakes, cookies and other baked goods, as well as hot and cold beverages. Shares of CRMB traded higher by 60.41% or $0.2429/share to $0.64. In the past year, the shares have traded as low as $0.11 and as high as $1.55. On average, 147735 shares of CRMB exchange hands on a given day and today's volume is recorded at 25277294.