A renowned bakery chain based in California, favored by celebrities such as Drew Barrymore and Oprah, has unexpectedly shut its doors, giving employees only a day’s notice.
Sprinkles Cupcakes announced the closure of its 20 locations spanning six states on December 31.
This surprising decision comes after two decades of operation, during which the bakery amassed a devoted following, including supermodel Gigi Hadid, who indulged in their confections to satisfy her pregnancy cravings.
The company attributed the closure to ‘financial conditions due to unforeseen business circumstances,’ as reported by the New York Post.
According to a closure announcement, the company plans to conduct the shutdown in an orderly manner to meet remaining operational commitments and retain as much value as possible.
The abrupt closure has left employees frustrated, as they claim they were informed just a day before the shutdown, despite being instrumental in managing the bustling holiday season.
Founder, Candace Nelson, who sold the company to private equity firm KarpReilly Capital Partners in 2012, said she was shocked to hear of the closings.
‘Even though I sold the company over a decade ago, I still have such a personal connection to it, and this isn’t how I thought the story would go,’ she said in an Instagram video.
Sprinkles Cupcakes announced it had closed its 20 locations across six states on December 31. It was beloved by many celebrities, including Drew Barrymore (pictured in 2016)
Oprah even promoted the brand on her show, which help boost its cult following
Hillary Duff was also a fan of Sprinkles cupcakes. Pictured: Duff in LA in 2015
‘I thought Sprinkles would keep growing and be around forever. I thought it was gonna be my legacy.’
Sprinkles hit the map after launching its ‘cupcake ATMs,’ although it is unclear what will happen to the sugar-filled vending machines.
The bakery operated more than 20 stores, including in Beverly Hills, where it started, as well as across California. It also had spots in Washington DC, Arizona, Texas, and Florida.
Employees ranted under the company’s latest Instagram post, which promoted getting cupcakes to ring in the New Year, about only getting a day’s notice about their sudden layoffs.
‘Cupcakes are sweet. One-day layoff notices are not,’ one wrote.
‘One day notice is crazy. Just used us for the holidays then tossed us aside,’ another wrote.
Kimberly Salgado, who worked at the Irvine store for three years, told the New York Post: ‘They let us be in the dark and spend our Christmas Eve there and work hard during the holidays to get them that holiday profit and then they just dumped us on New Year’s Eve.
‘That feels like such betrayal to me.’
In 2017, model Coco Rocha attended an event with her then-infant daughter, who seemed delighted in the sweet treat from the celeb-popular brand
Founder, Candace Nelson, who sold the company to private equity firm KarpReilly Capital Partners in 2012, said she was shocked to hear of the closings
‘I thought Sprinkles would keep growing and be around forever. I thought it was gonna be my legacy,’ Nelson (right) said
The announcement came as a shock to workers and fans as it had recently announced that it would be expanding the business to the Back Bay area of California.
Nelson first opened Sprinkles in 2005 in Beverly Hills.
Just a year in, Barbra Streisand sent a box of cupcakes to Oprah Winfrey, who talked about the treats on her show.
This launched the company into the stratosphere, and people began lining up outside the shops for the cupcakes topped with a mountain of frosting.
Model Gigi Hadid even revealed in 2020 that Sprinkles Cupcakes were a pregnancy craving of hers and that she ordered a whole box to her house to enjoy.
‘Pregnancy is real when u order nationally shipped @sprinkles to be delivered to yourself,’ the then-25-year-old wrote.
‘@sprinkles do I have to defrost the whole box right when I get it or can I defrost the [cupcakes] one by one to make them last longer?’
In 2017, model Coco Rocha attended an event with her then-infant daughter, who seemed delighted in the sweet treat.
Actress Drew Barrymore even promoted the brand at an event in 2016.
.Sprinkles Cupcakes shuttered all its doors on December 31 after 20 years in business and paved the way for countless copycat style brands
The company was known for its cupcake ATMs which drew lines around the block
She debuted their strawberry shortcake cupcake as part of a charity benefit aimed at helping the United Friends Of The Children, which helps foster children.
Kendall Jenner and friend Hailey Bieber were also seen snacking on the delicacies in 2014 at the Beverly Hills store.
Nelson, for her part, said she was grateful for the fans of the celeb-obsessed brand.
‘I’m deeply grateful to the fans, customers, and community who showed up, celebrated with us, and made Sprinkles part of their traditions,’ Nelson wrote on Instagram.
‘And to the team who made it all happen. I’ll always be proud of what we built,’ she concluded.
The Daily Mail has reached out to Sprinkles and KarpReilly Capital Partners for comment.
