NEW YORK, July 8 (UPI) -- Crumbs Bake Shop announced to its employees that they were permanently closing all of its stores at the close of business Monday.
"Regrettably Crumbs has been forced to cease operations and is immediately attending to the dislocation of its devoted employees while it evaluates its limited remaining options," Crumbs told The Wall Street Journal.
The bakery saw a surge of success after they opened in 2003. It had 48 stores across the country after closing three stores in 2013 and six in 2014. The company went public in 2011, but the NASDAQ suspended trading on July 1, saying that shareholders did not hold enough equity.
Crumbs Bake Shop had several locations in high rent districts in cities including New York and Washington D.C. According to its most recent earnings report, the company was paying $25 million in rent per year with just $40 million in sales.
Employees were not aware of the closing until the announcement Monday. More than 500 workers are out of work as of Tuesday morning.
"I come into work today, I'm happy, I'm skipping to work, and suddenly I don't have a job," said Kareem Wegman, a Brooklyn store manager.