Sprinkles Cupcakes Is Closing, Founder Says

Sprinkles Cupcakes is closing, according to cofounder Candace Nelson. Nelson announced the closure on Wednesday, stating that the company's locations were closing that day.

She expressed surprise at the development, noting that she had expected the brand to continue growing and serve as her legacy. Nelson started the American cupcake brand in 2005 with her husband and sold it to private-equity firm KarpReilly in 2012.

At the time of the sale, Sprinkles operated 21 stores in seven states and had pioneered the cupcake ATM in 2012, which included 25 dispensaries in airports and malls. The company employed over 1,000 people.

Nelson no longer has ownership or operational involvement with Sprinkles and has since cofounded Pizzana and CN2 Ventures. It is unclear if KarpReilly sold the business or is winding it down, as the firm removed Sprinkles from its online holdings list in the fourth quarter.

Candace Nelson announced that Sprinkles Cupcakes is closing. She made the statement on Wednesday regarding the bakery's future.

Nelson founded the brand in 2005 with her husband. The couple sold the company to private-equity firm KarpReilly in 2012.

Following the sale, Nelson continued her career in the food industry. She went on to cofound pizza company Pizzana and CN2 Ventures, a family office that invests in startups.

In 2022, she authored a book for entrepreneurs. The book details how to turn business ideas into profitable companies, drawing on her experience building Sprinkles.

Nelson clarified her current relationship with the brand. On LinkedIn, she stated she has "no ownership or operational involvement" with Sprinkles.

Sprinkles Cupcakes was a pioneer in the bakery industry. The brand introduced the cupcake ATM in 2012, allowing customers to purchase cupcakes through a machine.

The company operated a significant footprint prior to the closure announcement. According to its website, Sprinkles had 21 stores across seven states.

In addition to its retail locations, Sprinkles utilized automated dispensing. The company maintained 25 dispensaries in airports, malls, and other locations.

The brand employed a large workforce. Nelson's LinkedIn profile indicated the company had over 1,000 employees.

The website did not indicate any closures prior to Nelson's announcement. The stores were reportedly closing on the same day as her statement.

The current status of the business remains uncertain. It is unclear if KarpReilly sold the business or is winding it down.

Signs point to a removal from the private-equity firm's portfolio. KarpReilly removed Sprinkles from its online holdings list during the fourth quarter, according to an archived version of its website.

KarpReilly is a Connecticut-based firm with various food and beverage investments. Its portfolio includes Wilde Chips, the ice cream company Salt and Straw, and the fast-food chicken company Starbird.

Sprinkles was a survivor of the 2000s cupcake trend. It was one of the last holdouts of the cupcake boom, along with Georgetown Cupcakes.

Other brands from the era have attempted comebacks. Cumbs, which closed in 2016 after aggressive expansion, was bought by its original cofounders in 2022 and relaunched as a delivery-only business.