Dive Summary:
- Shares of Crumbs Bake Shop slipped 12% on Wednesday following a week of decline after a WSJ article claiming America's obsession with gourmet cupcakes may be over.
- The company recently recorded a $5 million Q4 loss amidst several other poor investments and stagnating growth.
- Companies like Crumbs, once the flag bearers of the gourmet movement, are now finding themselves up against the wall as America moves its interest elsewhere.
From the article:
Crumbs, which couldn't be reached for comment, also had to raise $10 million in financing, which spooked investors further. CEO Julian Geiger disputed the idea that cupcake demand is crumbling. He told the paper, "The decreases in business are in the metro markets where the stores have existed for quite a while."
