As Marcus Lemonis mulls how to save struggling Crumbs Bake Shop (CRMBQ), one thing's for sure: the chain won't be nearly as focused on its flagship product, the cupcake.
On Friday, Crumbs secured financing from a joint venture between Lemonis, Chairman and CEO of Camping World and Good Sam Enterprises and star of CNBC's "The Profit," and Fischer Enterprises-a prelude to its ultimate goal of buying its assets out of bankruptcy and reopening.
"While I'm a fan of the cupcake, I don't believe that any business can make it singularly on one product and so the goal ultimately is really to have it carry multiple products whether it's pies, cookies, ice cream, cake, a variety of things because as things kind of move in and out of popularity, we want to be able to be nimble," he said in a "Power Lunch" interview Monday.
The financing from Lemonis Fischer Acquisition Company will help the chain cover payroll expenses and the costs of its Chapter 11 bankruptcy filing. Pending bankruptcy court approval, the joint venture intends to acquire Crumbs' assets, form a new privately held company and re-open its locations.
Part of Lemonis' motivation for attempting to buy Crumbs is the ability to integrate some of the other brands already in his portfolio, including Mr. Green Tea Ice Cream, Sweet Pete's Candy, Key West Key Lime Pie and Matt's Cookies. The new company will also feature items from Dippin' Dots and Doc Popcorn, which are owned by Fischer Enterprises.
(Click here for the full Profit episode about Sweet Pete's.)
Moving forward, Lemonis envisions Crumbs transitioning to a "sweets and snack destination" rather than just a cupcake shop. While it will add some items, customers shouldn't expect sandwiches, soup or hamburgers as part of the strategy shift, he added.
In what he sees as a "herculean effort to make" Crumbs work, Lemonis said he'll be looking at the profitability of each location during the bankruptcy process.
"This is not an opportunity just to open up all these stores and sell a bunch of products," Lemonis said. "We want to be disciplined about it. So if that store is a money maker, then it will reopen. And if it's not, I can't promise that it will."
Disclosure: "The Profit," which stars Marcus Lemonis, is a CNBC show.
-CNBC's Katie Little
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- Crumbs Bake Shop
- Marcus Lemonis