Crumbs' Downfall Shows Limits of American Cupcake Addiction

Why Crumbs Failed
NEW YORK, NY - JUNE 06: A selection of cupcakes is seen at Crumbs Bake Shop & David Burke NYC event to launch lunch menu at David Burke Treehouse Bar on June 6, 2013 in New York City. (Photo by Brian Ach/Getty Images for Crumbs Bake Shop)
NEW YORK, NY - JUNE 06: A selection of cupcakes is seen at Crumbs Bake Shop & David Burke NYC event to launch lunch menu at David Burke Treehouse Bar on June 6, 2013 in New York City. (Photo by Brian Ach/Getty Images for Crumbs Bake Shop)

Is America’s decadelong cupcake craze ending?

The frenzy, which spawned treat-dispensing ATMs and a $42 “colossal” cupcake that serves eight people, ran into reality this week when Crumbs Bake Shop Inc. (CRMBU) shut all 48 of its stores.

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