Word is the cupcake company will be sold to an investor group that will include Marcus Lemonis, CNBC host (right), and Fischer Enterprises, owner of Dippin’ Dots.
Many people said that Crumbs’ biggest problem was the fact that it hitched its wagon exclusively to a food trend that eventually died out. By the sound of the details that have been revealed so far, the company plans to change that. The addition of these new leaders will also solve some of the marketing challenges that the company clearly had.
According to The Wall Street Journal, Crumbs has filed for Chapter 11 bankruptcy and the investor group is going to foot the bill to get the company through that process. The investors, with approval from the courts, will also acquire Crumbs’ assets to reopen revamped Crumbs stores that Lemonis said, in a statement, will be a “sweet and snack destination.”
That one bit, in and of itself, addresses the issue of experience that we brought up in the previous story. The company now sounds like it has a purpose that goes beyond pushing cupcakes. It’s going to have not just other products to sell, but other qualities to offer.
“The company’s hoped-for savior has made a name for himself in bailing out distressed companies. In his TV show ‘The Profit,’ Mr. Lemonis invests his own money into struggling small businesses in an attempt to turn them around,” WSJ continues. He has purchased other dessert companies that will have a synergy with the new acquisition.
By the sound of it, the rethinking of the company that’s happening takes into account all of its weaknesses. People like sweet treats, whatever form they come in. It’s the intangibles, the details and the branding that Crumbs also has to work on. It helps that one of the owners also has an inside track with one of the most notable broadcast business networks on the dial.
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