Crumbs Cupcake Chain Files Bankruptcy With Bidder on Tap

Crumbs Bake Shop Inc., the New York-based chain that went public three years ago at the peak of the cupcake craze, filed for bankruptcy after arranging a potential takeover with a venture including the maker of Dippin’ Dots ice cream.

The company, known for supersized cupcakes topping out at 1,090 calories, listed assets and debts of as much as $50 million each in a Chapter 11 filing yesterday in U.S. Bankruptcy Court in Newark, New Jersey. The chain, which in April had about 65 locations in 12 states and the District of Columbia, shut all of its stores July 7.