Sprinkles Cupcakes, the specialty bakery chain known for its cupcakes and ATM-like vending machines, ceased operations on December 31. Candace Nelson, who founded Sprinkles in 2005, announced the closure via social media.
Nelson sold the California-based business to private equity firm KarpReilly LLC in 2012. Neither Nelson nor KarpReilly provided a reason for the company's closure. "As many of you know, I started Sprinkles in 2005 with a KitchenAid mixer and a big idea," Nelson said on Instagram. "While she no longer has a role in the business, she added, its surreal to see this chapter come to a close and its not how I imagined the story would unfold."
Sprinkles Cupcakes is credited with igniting a nationwide cupcake craze, leading to a surge in boutique cupcake bakeries. The company expanded beyond traditional retail locations by introducing cupcake vending machines, which dispensed freshly baked cupcakes and played a signature tune with each transaction.
On Friday, the company's website indicated that nationwide shipping was unavailable. An offer for a New Year's Eve dozen cupcakes redirected users to a "page not found" error. The locations link stated, "When its gone, its gone." The financial terms of KarpReilly's acquisition of Sprinkles in 2012 were not publicly disclosed. The impact of Sprinkles' closure on the specialty baking market remains to be seen, but its influence on the industry is undeniable.
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