Crumbs Bake Shop Inc (OTCMKTS:CRMB) is a hot topic again today after the cupcake maker received a lifeline from Marcus Lemonis, who’s known for The Profit, a TV show on CNBC. He said his investor group also includes Mark and Scott Fischer, who successfully bailed out Dippin’ Dots, a well-known ice cream chain. According to CNBC, Lemonis’ investment is seen as “a prelude to an acquisition.”
Crumbs Bake Shop re-launches
Crumbs Bake Shop Inc (OTCMKTS:CRMB) closed down 48 stores in 10 states earlier this week as it went bankrupt. It reportedly defaulted on a repayment of $14.3 million. At that point, the NASDAQ delisted the company’s stock, and it was shifted to over the counter trading.
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The cupcake maker racked up $3.8 billion in losses during the first quarter of the year, which is almost twice last year’s first quarter losses. With this financing offer from Lemonis and the Fischers, investors have high hopes for it to be revived in light of the Fischers’ success with Dippin’ Dots a couple of years ago.
Lemonis said Crumbs Bake Shop’s big problem was that it didn’t have enough cash. As a result, he said the investor group is trying to find a way to turn the company into a viable one. Many investors and even Crumbs’ CEO see the company as having too narrow a focus. As the company expanded, demand for the tasty but high calorie treats plunged, as consumers opted for healthier choices. Apparently Lemonis agrees that the cupcake maker has too narrow of a focus, as he said that he plans to add in a number of other holdings, like Sweet Pete’s Candy, into one larger company that includes Crumbs Bake Shop.
Penny stocks galore
What is it with penny stocks this week? Crumbs Bake Shop Inc (OTCMKTS:CRMB) isn’t the only penny stock that’s hot today. We continue to hear more and more about the craziness that has been CYNK Technology Corp (OTCMKTS:CYNK)’s shares this week.