The struggling cupcake chain Crumbs Bake Shop may live to bake another day.
A group of investors — including Marcus Lemonis, the CEO of Camping World and Good Sam Enterprises — is planning to invest in the baked goods chain, according to various reports.
After the news broke about the investors on Thursday, the stock soared from just 3 cents to 40 cents (or nearly 1,200%).
On Monday, Crumbs (CRMB) abruptly closed all its stores a week after the struggling retailer was delisted from the Nasdaq.
Lemonis told the New York Daily News he is planning in invest in Crumbs and is outlining a new strategy that will expand its offerings beyond cupcakes.
“I am working on a plan to rescue it,” Lemonis told the newspaper. “It’s not fully baked yet. We are lending them money today to get their doors back open.”
Crumbs CEO Edward Slezak in a statement on Thursday that the company is “in talks with various interest parties that are allowing us to pursue all of our options for the business, which includes consideration of restructuring alternatives.”
Crumbs first went public in 2011 and opened its first shop in Manhattan in 2003. By the end of that year the bakery had over 70 shops, but also found itself strapped for cash, according to a recent Fortune story.
The company recorded 12 quarters straight net income losses, including a cash supply of just $300,000.
