Crumbs Crumbles

High-end cupcake bakery shuts its doors.
4:32 | 07/08/14

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Transcript for Crumbs Crumbles
Okay. It is to. New York financial markets are open in today's big number 48 and that is how many -- Stores they're used to be. That's after the company chain ran out of -- turning off its -- we customers intense they are out of luck when it came to their cupcake fixes this morning. Everyone I'm Dan Cutler in New -- here with all that -- details from Yahoo! finance my accidentally joining us this Tuesday morning so might this wasn't a total shock right because. The NASDAQ pulled the stock a week ago but what prompted that initial. While the company's finances it's always been a -- a loss making business it was having too much debt it was never run at a profit really. And -- they basically were too close to the to the threshold. Basically not being financially strong -- for NASDAQ -- to continue to list the company publicly. That was really the final straw but as -- said the company was never really. Run that well in terms of profits and and essentially went public when -- did in 2011. Not in the traditional way by just going out and selling shares in itself five to new investors but sort of -- in with a public shell company so as a business there was always a little bit Marshall. Well the Wall Street Journal's reporting that the -- lost more than eighteen million dollars last year so. Obviously marginal yet to to say the least on that. But the question is though is this all about a bad just not taking up not being profitable on -- because you know I mean obviously -- -- in the New York area there are cupcake shop just on every other quarter. And they expand its through some areas throughout the country but still at these metropolitan areas that seem to really been a hotbed for cupcakes is it over it was that the -- I would say it's not so much that it's over is that it's too crowded so basically wants and anybody sees a little -- like there's a very very narrow kind of product category that people seem to love and it's it's an affordable indulgence and people I've always great reasons why. It seems like a really fun business and something that that people seem to be -- -- in buying. It gets too crowded and that's exactly what we saw they don't evolve fast enough basically you know sugar -- obviously been televised. So it's not so much that people are riding cupcakes anymore just not as much and not enough to sustain perhaps all the -- -- who wanted to get a piece of that little business. And of this particular business that there wasn't much optimism in a company statement spoke press referring to limited remaining options. So that would seem to cancel -- any possibility that there's going to be a restructuring any kind of rising from the ashes here right. You have really dies I mean at this point essentially just a salvage operation -- their leases some and you want to take over. You know you could probably buy some mixing machines if you really want to do you -- are used. But -- in -- it doesn't seem as if this brand of this chain is going to be revived its current form. -- China the sugar factor -- their latest a single crumbs of -- -- 780 calories 36 grams of fat. Obviously not great for shareholders and not those good for those people that are working at those stores for our waist lines I guess that would be the only beneficiary from all of this. Well that presumes are people are gonna find some more house I mean I was joking this morning. On Twitter that you know if you look around the New York area. It's a frozen yogurt chains -- seem like they're next in line. They are now the affordable indulgence as your little bit of -- -- rush and then they have the benefit of of sort of at least seeming more healthy. Then then a big huge cupcake but it seems to me. It's a similar story where you get this one again narrow consumer product category. But a lot of franchisees decide to grab a piece and it becomes crowded and just people kind of get bored they just don't have in his office on as if it goes away -- sort of be able to find cupcakes all over the place just not necessarily crumbs -- -- just not necessarily people stopping as often as they did before the race in a long time to six in his innings off the -- That's for what magnolia cupcake was the was the one that was made famous by -- and is there -- and you're right -- crumbs cupcakes there's there's magnolia there's bring business of the competition in the theater right. It's very competitive out there. Where there is room for opportunity that was broccoli. It's the Caltrans. -- I don't I think if I know about it it's probably already passed its peak of this problem -- Russia Mike Sadler forgot who financed my back so much have a -- that is there. Of course you give up latest headlines right here BC dot com and number -- that --

This transcript has been automatically generated and may not be 100% accurate.

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