Crumbs Bake Shop Inc (OTCMKTS:CRMB) has officially filed for bankruptcy, sending its stock plummeting after it rose last week on speculation of a buyout. The cupcake maker’s filing comes after plans for a possible takeover by a group of investors that includes two men credited with saving Dippin’ Dots.

Crumbs Bake Shop

Crumbs Bake Shop declares bankruptcy

The Financial Post reports that Crumbs Bake Shop reported assets and debts of up to $50 million, according to court documents. The chain closed all of its stores in 12 states earlier this month. Crumbs is known for making giant cupcakes that have more than 1,000 calories in them.

In a statement, Marcus Lemonis and Fischer Enterprises said they created a joint venture for the purpose of providing financing with a goal of acquiring Crumbs Bake Shop’s assets. The investors’ products already include Little Miss Muffin and Wicked Good Cupcakes. Last week it had been reported that Lemonis and the Fischers had taken an interest in Crumbs Bake Shop, and the chain’s stock soared by more than 1,000%.

Crumbs Bake Shop prepares for bankruptcy auction

The offer will be the lead bid in the bankruptcy auction of the company’s assets. They agreed to provide financing to the cupcake maker during bankruptcy, if the court approves it. They will also look over Crumbs’ retail plans and possible reopen some locations or opening new locations. Crumbs seeks to finish the sale within the next 60 days.

“We are very pleased to have reached this agreement with Lemonis and Fischer, after carefully evaluating opportunities to strengthen Crumbs’ financial position, in order to ensure a strong future for the Crumbs brand and business,” said Crumbs CEO and general counsel Edward Slezak in a statement. “… We remain saddened that we were forced to cease operations before this agreement was reached, but we strongly believe that pursuing this sale through the chapter 11 process is ultimately in the best interest of the Company and its stakeholders.”

Lemonis had already said they plan to incorporate Crumbs Bake Shop in with some of their other products.