Marcus Lemonis, Fischer Enterprises Form Joint Venture to Provide Financing to Crumbs Bake Shop and Acquire the Business through a 363 Sale
LINCOLNSHIRE, Ill. & OKLAHOMA CITY--(BUSINESS WIRE)--Marcus Lemonis LLC and Fischer Enterprises, L.L.C. today announced they have formed a joint venture, Lemonis Fischer Acquisition Company, LLC, and have signed an agreement to provide financing to and ultimately acquire the assets of Crumbs Bake Shop, the New York-based cupcake chain that ceased operations Monday and filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of New Jersey earlier today.
“We are excited to join forces with business guru Marcus Lemonis to develop a plan that is designed to reshape the company and operate the new Crumbs for broader appeal.”
Under terms of the agreement, the joint venture has provided pre-petition secured financing to provide Crumbs with funding to complete its Chapter 11 filing. In addition, Lemonis Fischer Acquisition Company has committed to provide debtor-in-possession (“DIP”) financing, subject to court approval, and to ultimately acquire Crumbs’ assets under Section 363 of the Bankruptcy Code, forming a new privately held Crumbs company, re-opening its stores and putting its employees back to work.
“Fischer Enterprises and Lemonis continue to view the Crumbs brand as being well established in the marketplace with a loyal customer base. Crumbs is known for its high-quality cupcakes, which will remain a mainstay in the new company but will be supplemented by a much improved product mix to broaden its appeal to a larger customer base,” said Scott Fischer, C.O.O., Fischer Enterprises. “We are excited to join forces with business guru Marcus Lemonis to develop a plan that is designed to reshape the company and operate the new Crumbs for broader appeal.”
According to Lemonis, “Our goal is to create a viable business model by making Crumbs the nation’s ‘sweet and snack’ destination. We will continue to offer high-quality Crumbs cupcakes and add other high-quality products owned or controlled by me and/or the Fischers, such as Dippin’ Dots ice cream, Doc Popcorn, Wicked Good Cupcakes, Little Miss Muffin, Betty Lou’s snacks, a host of gluten-free baked goods, Matt’s Cookies, Pie King, Key West Key Lime Pies, Mr. Green Tea Ice Cream, Sweet Pete’s Candy and Coffee of Grace (Grace Hightower De Niro), as well as a new exciting product from an episode of the upcoming fall season of CNBC’s The Profit. This is a great opportunity to join forces with Fischer Enterprises and the high level of business expertise and acumen they possess.”
Fischer Enterprises, the owner of frozen treat maker Dippin’ Dots, L.L.C., is a privately held investment company based in Oklahoma City. The company previously completed a $5 million senior secured credit facility with Crumbs Bake Shop in January 2014.
Marcus Lemonis is an entrepreneur, investor, television personality, and chairman and CEO of Camping World and Good Sam Enterprises. Lemonis is also known as the "business turnaround king" and star of CNBC's prime time reality series, The Profit, in which he lends his expertise to struggling small businesses around the country and judges businesses based on a "Three P" principle: People, Process, and Product.