Crumbs Surges After CNBC Says Lemonis Considering RescueKevin Orland
Crumbs Bake Shop Inc. surged in New York trading after CNBC reported that an investor group including Camping World Chief Executive Officer Marcus Lemonis is planning financing and an acquisition.
Shares of the cupcake chain, which closed all of its stores earlier this week, rose more than 10-fold to about 32 cents at 11:43 a.m. in New York. The stock had fallen 96 percent this year through yesterday.
Lemonis, the star of CNBC’s reality show “The Profit,” is working with the Fischer family and would add other holdings such as Sweet Pete’s Candy to a new entity with Crumbs, the network reported.
Chief Executive Officer Edward Slezak had tried to reinvigorate the New York-based company with new items after taking charge in January. The chain posted $23 million in losses in its previous two fiscal years.