The cupcake craze of recent years swept Michigan just like every other part of the country. For one little East Coast bakery that first opened its doors in 2003, the national sweet tooth opened up opportunities to expand the business, even going public less than 10 years later. Crumbs was famous for its calorie-packed cupcakes, which sold for around three or four dollars apiece.
However, with changing tastes and perhaps the end of a fad, the company saw year after year of dwindling cash flow, and Crumbs finally made the decision to file for Chapter 11 bankruptcy. Crumbs Bake Shop initiated the business bankruptcy filing after defaulting on a loan of over $9 million. It closed all of its almost 50 stores and retained only nine of its over 450 employees.