Eric Rodawig
Long-term horizon, value

Crumbs Bake Shop Is A Complete Disaster

Crumbs Bake Shop (NASDAQ:CRMB) went public through a blank-check company IPO in May 2011. Since then, the company has missed targets, burned through cash, diluted shareholders through a secondary offering, and most recently, entered into a binding term sheet to sell convertible notes to Michael Serruya, the co-founder and co-owner of Yogen Früz.

Per one of Crumbs' early investor presentations, Crumbs was founded in 2003 by husband and wife Mia and Jason Bauer in New York City. As the shop became popular and the business expanded, revenue grew from $542k in 2003 to $31.1mm in 2010 before the IPO. However, problems began when a blank check company "57th Street General Acquisition Corp" began the merger process with...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details