Crumbs Bake Shop To Reopen Stores: Reports

(RTTNews) - Struggling cupcake maker Crumbs Bake Shop Inc (CRMB) has won an approval from court to reopen stores from next month, according to reports.

Wall Street Journal Tuesday said that Judge Michael Kaplan in U.S. Bankruptcy Court in Newark, New Jersey signed off on the sale to Marcus Lemonis and Dippin' Dots owner Fischer Enterprises, which is taking over Crumbs in exchange for the cancellation of some $6.5 million in debt.

"The court is pleased to see there will be employees going back to work, and that there will be certain landlords with continuing tenants," said Judge Kaplan, after granting the approval, effectively ending the company's Chapter 11 bankruptcy case, the news report said.

The company now intends to open about two dozen locations, in New York, Los Angeles, Chicago, Boston and Washington, D.C.