The cupcake craze is getting crazier.
Crumbs Bake Shop, the country’s largest cupcake chain, will go public through a $66 million merger with an investment company, the 57th Street General Acquisition Corporation.
The deal, which is expected to be announced on Monday, gives Crumbs the money to execute its ambitious expansion plans.
The growth plans for Crumbs come as so-called gourmet cupcake shops are proliferating across the country. Sprinkles, based in Los Angeles, began with one location in Beverly Hills and now has seven with plans for three more. Washington is filled with cupcake stores, led by Georgetown Cupcake, whose owners had their own reality show on cable TV. There is also Magnolia Bakery in New York, with three locations and a permanent place in the cupcake canon in part because of a cameo on “Sex and the City.”
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