The Sprinkles Cupcake chain on Dec. 31 closed all of its company-owned locations, co-founder Candace Nelson posted on Instagram this week.
Nelson, who co-founded the cupcake chain in 2005 with her husband Charles Nelson and sold it to private-equity firm Karp Reilly in 2012, posted that she no longer has any ownership or operational interest in the company.
The news appeared to be a surprise. She described it as surreal, saying, “It’s not how I imagined the story would unfold.”
Sprinkles officials did not immediately respond to questions about the closures and Nelson did not give a reason. As of Thursday, no bankruptcy had been filed.
Reports indicated that workers at the bakeries were also surprised by the news, saying they were told on Monday the stores would be closing.
It’s not clear how many retail locations are impacted and whether the cupcake specialist will continue to franchise.
Sprinkles began with a tiny shop in Beverly Hills that in the early years regularly had lines out the door, often selling out of cupcakes before closing time. It was a favorite of celebrities, and at one point reportedly had as many as 70 locations across the country.
Sprinkles was also known for its pioneering cupcake ATM machines, which were stocked with a selection of cupcakes made at a nearby bakery.
The chain ended 2024 with 24 units (18 company-owned) and sales of $44.5 million, a 3% increase, according to Restaurant Business sister-brand Technomic.
After selling Sprinkles, the Nelsons went on to found the Los Angeles-based Pizzana restaurant chain, an eight-unit full-service concept that also has locations in Dallas and Houston.
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