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Industry NewsSweet Goods

Sprinkles permanently shutters stores, vending machines

The cupcake company originally launched twenty years ago.

By Liz Parker Kuhn
Sprinkles debuts licensing expansion

Courtesy of Sprinkles

January 5, 2026

Sprinkles, the California cupcake company, has closed all 15 of its remaining retail locations, plus its vending machines, blindsiding its employees with the news. The brand, founded by Candace Nelson twenty years ago, was known for its sweet treats and 24/7 cupcake ATMs, found all over the country. Nelson started the company at her home, and Sprinkles' first location was in a Beverly Hills storefront. 

“Even though I sold the company over a decade ago, I still have such a personal connection to it, and this isn’t how I thought the story would go,” says Nelson via her Instagram on December 31, 2025.

Nelson says: "Today is Sprinkles’ final day. As many of you know, I started Sprinkles in 2005 with a KitchenAid mixer and a big idea. Over the years, we expanded across the country and launched the Cupcake ATM. I sold Sprinkles in 2012 and have no ownership or operational involvement in the company. Still, it’s surreal to see this chapter come to a close - and it’s not how I imagined the story would unfold.

I’m deeply grateful to the fans, customers, and community who showed up, celebrated with us, and made Sprinkles part of their traditions - and to the team who made it all happen. I’ll always be proud of what we built. Today, my heart is with the Sprinkles employees ."

The brand's current parent company, KarpReilly LLC, hasn't given a full reason for the closure, though operational challenges were mentioned previously. 

“After thoughtful consideration, we’ve made the very difficult decision to transition away from operating company-owned Sprinkles bakeries,” a representative for the company wrote in a statement shared with Nexstar Media Group's KTLA station.

Sprinkles helped fuel the cupcakes craze that included competitors like Crumbs Bake Shop and Baked by Melissa, says The New York Times, and "the company’s philosophy of getting cupcakes to the people was considered innovative. It set up a Sprinklesmobile in 2013, also described by KarpReilly as the 'world’s first cupcake truck,' and stocked cupcakes in custom vending machines."

"The Sprinkles disappearance seems all the more surprising as American culture has embraced cupcakes as tiny, rotund treats with a heavy cap of frosting and an expansive range of flavors," NYT finishes.

Cryptically, Sprinkles' website now shows a "We'll be right back! Sign up below to be kept in the loop" message, which could mean the brand may be returning in some form or another soon.


Related: Sprinkles Chocolate launches Cupcake Bites

KEYWORDS: cupcakes foodservice foodservice baked goods sprinkles

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Liz200

Liz Parker Kuhn is the senior editor of Candy Industry and Snack Food & Wholesale Bakery, and has worked at BNP Media since 2012. She has written for CBS Detroit as well as for her own blogs. She earned a Bachelor of Arts in Creative Writing from the University of Michigan. Liz can be contacted at (248) 839-7156 or at parkerkuhne@bnpmedia.com.

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