lamantin via flickrIn 2011, Crumbs Bakery announced it would go public in a reverse merger worth $66 million.
The company’s stock held at $13 for most of the year, but now — two years later — it’s down to $1.40.
Is the cupcake craze coming off its sugar high?
The craze first began in 2000, when Miranda and Carrie munched on Magnolia's Cupcakes on an episode of Sex and the City.
People quickly jumped on fashion trends the show featured.
This time, they jumped on the culinary trend, too.
Tourists started flocking to Magnolia Bakery's West Village location. And then a Sex and the City tour bus made the location a destination on its NYC tour.
After that, cupcake shops started popping up around the country. Sprinkles Cupcakes, founded in 2003, was one of the first.
Its cupcakes went for $3.50 and it bills itself as being the instigator of the cupcake craze.
Its founder, Candace Nelson, later became a judge on Food Network's Cupcake Wars.
Georgetown Cupcake in Washington, D.C., opened in 2008, and Cupcake Nouveau in Miami also became well-known names.
Georgetown baked its way to a TLC show, DC Cupcakes, and recently opened its first New York City location.
Cupcake Nouveau was also featured on TLC on Cupcake Wars.
But when Crumbs came around, it blew past the competition. The store was founded in 2003 in New York and grew to 34 locations before going public.
There are 19 locations in Manhattan alone.
Across the country, at least five more shops are set to open soon, according to the company's website.
Crumbs' stock is currently trading for $1.40.
That's a fall of more than $12 from its original peak in 2011.
The company has pinned part of the problem on sales loss in its East Coast stores after Hurricane Sandy.
But some investors started to get suspicious that bad things were on the horizon last week when Crumbs said it needed to raise $10 million in financing.
Now, some analysts are saying that Crumbs' stock plunge is signaling the burnout of the gourmet cupcake fad.
The market is becoming over-saturated. The number of Crumbs has grown more than sixfold since it was founded.
One writer in the Atlantic Wire voiced her hatred of big cupcake brands.
In her opinion, in most cupcakes today, 'the sugar tasted off, now, somehow, the frosting too cloying, the cake part of the cupcake so dry it stuck to the roof of our mouth.'
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