October 6, 2022

Crumbs Stock Rises a Whopping 950 Percent at the Hint of a Lifeline

Oh, it's worth noting that it was trading at 3 cents:

An investor group that includes the Fischer Family and Marcus Lemonis, Chairman and CEO of Camping World and Good Sam Enterprises and star of CNBC's "The Profit," confirmed it plans to provide financing for the struggling cupcake chain as a prelude to an acquisition.

Following the news, the company's stock soared more than 950 percent from 3 cents to 35 cents.

While the fall of Crumbs is largely blamed on the bust of the gourmet cupcake craze, a reasonable person with minimal ability to read a financial statement might guess it's actually debt that killed Crumbs. Net sales of $47.2 million last year seem to confirm that those with the money to do so will still cough up cash for an overpriced frosted treat.

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