Crumbs Bake Shop Inc., a New York-based cupcake specialty store chain known for its innovative and oversized gourmet cupcakes, reached an agreement with Lemonis Fischer Acquisition Co. LLC, a joint venture created by Marcus Lemonis LLC and Fischer Enterprises LLC, which is providing pre-petition secured financing for Crumbs’ voluntary Chapter 11 bankruptcy petition. The cupcake maker filed the petition in the U.S. Bankruptcy Court for the District of New Jersey on July 11. It closed all its stores on July 8.
Lemonis Fischer Acquisition Co. has also committed to provide debtor-in-possession (DIP) financing, subject to court approval, and has entered into an asset purchase agreement for the initial stalking horse bid in the court-supervised auction process. Under the terms of the agreement, Lemonis Fischer Acquisition Co. would acquire substantially all of Crumbs’ assets. Fischer Enterprises had previously provided Crumbs with a $5 million senior secured credit facility. The company hopes to complete the sale process in approximately 60 days, pending receipt of the necessary approvals from the Bankruptcy Court.