Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Pricey cupcakes - your chance to invest

crumbs_bakeshop.gi.top.jpgInvestors will be able to buy into gourmet bakery Crumbs in a deal aimed at making it a public company later this year. By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- Investors who want to invest in the national cupcake craze will soon be able to buy into the gourmet bakery Crumbs.

New York-based Crumbs Holdings said it is being acquired by the 57th Street General Acquisition Corp. in a proposed transaction that is expected to close in March. The company will then change its name to Crumbs Bake Shop and seeking a listing on the Nasdaq National Market.

Jason Bauer, co-founder and chief executive officer of Crumbs, said that going public will help the company achieve its plan of expanding to 200 locations by 2014.

Founded in 2003 in Manhattan, Crumbs has already expanded to 34 stores in six states and Washington, D.C.

Crumbs said that, based on preliminary estimates, it earned between $1.7 million and $1.9 million in 2010 on sales of $31.1 million.

Revenue is expected to climb to between $45 million and $50 million this year, and to between $85 million and $90 million in 2012, with profit rising to between $3.1 million and $3.9 million this year and between $8 million and $9 million next year. To top of page

Index Last Change % Change
Dow 15,973.84 313.66 2.00%
Nasdaq 4,337.51 70.67 1.66%
S&P 500 1,864.78 35.70 1.95%
Treasuries 1.75 0.10 6.33%
Data as of 11:45pm ET
Company Price Change % Change
Bank of America Corp... 11.95 0.79 7.08%
General Electric Co 28.26 0.81 2.95%
Cisco Systems Inc 25.11 0.43 1.74%
Chesapeake Energy Co... 1.59 -0.19 -10.67%
Freeport-McMoRan Inc... 5.53 0.64 13.09%
Data as of 4:15pm ET
Sponsors

Sections

Investors need someone they can bring home to mother instead of bad boys (or girls) that may make their heart beat faster. Boring beats bold in this market. Here are 10 dependable stocks we love. Southwest (ticker symbol: LUV) is one. More

Cheap oil and slow global growth may not be the only culprits of the global market turmoil. There's growing concern that central banks are spooking the markets too. More

Eastern Illinois University laid off 198 staff members this week, and the college president is blaming the state government. More