Crumbs Bake Closes Stores - Update

(RTTNews) - Struggling cupcake maker Crumbs Bake Shop Inc (CRMB) has closed all of its stores, three years after it went public when demand for cupcakes were soaring, but only to falter later on.

The company on Monday informed staff about the closure of its stores toward the end of the business day.

Crumbs has been struggling with weak financial outlook, having suffered years of losses as demand for its products waned. Crumbs has 48 stores in 10 states and the District of Columbia.

In March, Crumbs said it closed nine under-performing stores during the last three months of 2013, and shut six at the start of 2014.

Since the start of July, Crumbs shares' trading was suspended on the Nasdaq as it failed to meet market cap and other benchmarks.

Crumbs was started in 2003 on Manhattan's Upper West Side. While it expanded locations and boosted sales, it suffered consecutive losses. Its stock price took a beating, falling from $13 in 2011 to below a dollar last year.

While adding locations and increasing sales, Crumbs remained unprofitable. Investors grew frustrated with the chain, sending the shares down from $13 in 2011 to under a dollar last year.

The company's stock is trading at $0.025, down 0.13 or 83.33%.