NEW YORK — Sprinkles Cupcakes, the beloved bakery known for its cute and innovative cupcake ATMs, has officially closed its doors after two decades of service to cupcake enthusiasts across the United States. The sad announcement was made on December 30, catching many fans off guard.
Candace Nelson, who founded Sprinkles Cupcakes after losing her job in 2005, shared her feelings of disappointment and nostalgia. 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 stated. Sprinkles began in her kitchen, eventually opening its first shop in Beverly Hills, and grew to national prominence.
The unique cupcake-dispensing machines at various malls and airports, which played a catchy tune as they delivered the treats, became a social media sensation, particularly on TikTok.
As of now, the company has removed all products for sale from its website, indicating a total cessation of operations across its locations. Nelson sold Sprinkles to KarpReilly LLC, a private equity firm, in 2012, but neither KarpReilly nor Nelson have provided any official reasons for the closure.
The impact of private equity in the restaurant industry has been notable in recent years, with significant investments flowing into the sector. Some fans expressed outrage on social media, suggesting that the closure indicates a concerning trend where private equity firms buy promising restaurant brands only for them to eventually close or file for bankruptcy.
