Crumbs Bake Shop Closes Stores Across the Country

Crumbs Bake Shop Closes Stores Across the Country

It's a cupcake crisis! Crumbs Bake Shop, a national cupcake chain, is crumbling. Every one of its stores is shutting down from New York to Beverly Hills.

Crumbs Bake Shop started out as a mom and pop shop on the Upper West Side of Manhattan and grew to 48 shops in 10 states across the country. But today they're all closed leaving customers asking, "What went wrong?"

Crumbs said in a statement, "Regrettably Crumbs has been forced to cease operations."

It came as a complete shock to 800 full and part-time employees. One employee told the Wall Street Journal, "I'm skipping to work and suddenly I don't have a job."

Cupcake loving customers were also in for a shock when they came to get their cupcake treat. One patron told INSIDE EDITION, "My heart's broken."

Cupcakes are one of the hottest dessert trends going. America's love for cupcakes has even spawned TV reality shows like DC Cupcakes and Cupcake Wars.

So, does the closing of Crumbs indicate the cupcake craze is over? INSIDE EDITION stopped by New York's famed Magnolia Bakery.

A Magnolia representative told INSIDE EDITION, "We're not concerned. We've been open now for almost 19 years, and we've had such a wonderful time growing this brand and seeing people come in and enjoying it, and we look forward to continuing that for years to come."

See More of INSIDE EDITION's Interview with Magnolia