Fischer Provides Crumbs Bake Shop Facility
Crumbs Bake Shop announced the closing of a $5 million senior-secured credit facility. The lender, Oklahoma-based Fischer Enterprises, funded an initial $3.5 million and committed to providing an additional $1.5 million on or before April 1, 2014.
The combined proceeds will be used to implement the new business plan that Crumbs has been developing over the last two quarters. This plan focuses on aggressively developing a licensing program, strategically adding franchised stores to complement Crumbs’ successful company-owned stores and the ongoing initiative of closing or co-branding existing stores that are currently unprofitable.
Fischer Enterprises is the owner of Dippin’ Dots, LLC, maker of the flash frozen ice cream and desserts. Crumbs and Dippin’ Dots intend to explore possible synergies created in the areas of co-branding, cross-branding and distribution.
“We view our investment in Crumbs as a unique opportunity to work with a well-known company with a recognized brand name and established customer base,” said Scott Fischer, COO, Fischer Enterprises. “We believe that joining forces with Crumbs will allow us to create opportunities that could result in a win-win situation for both Crumbs and Dippin’ Dots. The areas of operation and sales concepts for the two companies are complementary and thereby could potentially result in increased market exposure for both.”
“We are thrilled to work closely with Fischer Enterprises as Crumbs begins the next phase of the growth and evolution of the brand,” said Edward Slezak, interim CEO and general counsel of Crumbs Bake Shop. “This transaction, coupled with Fischer Enterprises’ experience and expertise in franchising, will be instrumental as we execute our new business plan. We will provide greater detail about the aforementioned business plan during our fourth quarter earnings call.”
The first Crumbs Bake Shop opened in March 2003 on the Upper West Side of Manhattan and is well-known for its innovative and oversized gourmet cupcakes. The company has 69 locations in 12 states and the District of Columbia.