Lemonis is planning to finance and then acquire the cupcake store, with the help of the Fischer Family. This follows an announcement by the cupcake chain that it was going to shut down all 40 stores it had across 10 states. The company had lost its listing on the NASDAQ and defaulted on $14.3 million in financing.
"The company has limited cash and we are trying to come up with a situation that allows company to remain viable," Lemonis said. "We are in the final stages of working on a plan to get the stores reopened and people rehired."
Lemonis said that Crumbs' downfall was caused by its selling only one product, giant-sized cupcakes. He plans to incorporate other brands into the store, including Sweet Pete's Candy, which he owns.
"I, along with the potential other suitor, have investments in other cupcake, candy and dessert chains," he said. "I want to put pies, cookies, candies and make it a dessert destination."
After news of the possible acquisition, Crumbs' stock value soared 990 percent from 3 cents to 35 cents. The stock had fallen 96 percent this year through Wednesday and has posted $32 million in losses in the last two fiscal years.
Apart from owning Sweet Pete's Candy, Lemonis is the chief executive officer of Camping World and also stars in the CNBC show "The Profit."