The celebrated American bakery chain Sprinkles Cupcakes, a favourite of Hollywood A-listers like Oprah Winfrey and Drew Barrymore, has suddenly ceased trading, shutting all its locations across the United States. The company, which had been in operation for 20 years, informed its employees of the closure with just a single day's notice, sparking anger and accusations of betrayal.
A Sweet Legacy Turns Sour
Founded by Candace Nelson in Beverly Hills in 2005, Sprinkles Cupcakes rapidly grew from a single store into a 20-location empire across six states, including California, Texas, Florida, Arizona, and Washington DC. It became a cultural phenomenon, famed for its cupcake ATMs and a frosting-topped product that attracted legions of celebrity fans. The brand's stratospheric rise was cemented when Oprah Winfrey discussed the cupcakes on her show, sending demand soaring.
Despite its popularity, the company announced it had closed all doors on December 31, 2023. In a closing notice, it cited 'financial conditions due to unforeseen business circumstances' as the reason for the wind-down, which it said would be conducted in an orderly manner. The move came as a particular shock as the chain had recently hinted at expansion plans in California's Back Bay area.
Staff React with Fury to Sudden Layoffs
The abrupt nature of the closure has left employees feeling used and discarded. Many staff members, who had worked through the busy holiday period, learned they were losing their jobs with only 24 hours' warning. 'They let us be in the dark and spend our Christmas Eve there and work hard during the holidays to get them that holiday profit and then they just dumped us on New Year's Eve,' former employee Kimberly Salgado told the New York Post.
Angry comments flooded the company's final Instagram post, which promoted New Year's cupcakes. 'One day notice is crazy. Just used us for the holidays then tossed us aside,' one user wrote. Another stated bluntly, 'Cupcakes are sweet. One-day layoff notices are not.'
Celebrity Fans and a Founder's Disappointment
The bakery had cultivated an impressive roster of famous devotees over the years. Model Gigi Hadid famously ordered boxes to satisfy pregnancy cravings, while stars like Kendall Jenner, Hailey Bieber, and Hillary Duff were also spotted enjoying the treats. Founder Candace Nelson, who sold the business to private equity firm KarpReilly Capital Partners in 2012, expressed her profound shock and sadness.
'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,' Nelson said in an Instagram video. 'I thought Sprinkles would keep growing and be around forever. I thought it was gonna be my legacy.' She extended her gratitude to the fans, customers, and team who built the brand's community.
The future of the chain's iconic cupcake ATMs remains uncertain. The closure marks a bitter end for a brand that once defined the gourmet cupcake trend and leaves a significant gap in the American bakery landscape.
