NEW YORK (AP) — In a bittersweet turn of events, Sprinkles Cupcakes has officially announced its closure after two decades of serving up sweet delights across the U.S. The announcement came from former owner Candace Nelson, who lamented, 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 launched Sprinkles in 2005, initially operating out of her kitchen before opening the first location in Beverly Hills, which quickly gained national fame and even drew a devoted following on social media.
Known for its innovative cupcake vending machines, affectionately named cupcake ATMs, and the jingle that played when customers made a purchase, the brand briefly became a viral sensation on platforms like TikTok. However, as of December 30, the company’s website has ceased all operations, and there are no products available for sale.
Nelson, who sold Sprinkles to private equity firm KarpReilly LLC in 2012 after expanding the brand to a total of ten locations, had hoped for a different trajectory for her successful creation. KarpReilly, which has made significant investments across various food and beverage sectors, has not responded to inquiries about the reasons for this closure, leaving fans and patrons puzzled.
This closure is not an isolated incident but part of a larger trend where private equity firms acquire restaurant and retail brands, only to see them struggle financially. Outraged fans have taken to social media to connect Sprinkles' fate with other brands like Red Lobster and TGI Fridays, which have similarly faced financial distress after private equity acquisitions. The trend of private equity investment in the restaurant sector has surged dramatically, totaling $94.5 billion between 2014 and 2024 according to PitchBook data, raising concerns about the long-term impact of such arrangements on beloved brands like Sprinkles Cupcakes.
Known for its innovative cupcake vending machines, affectionately named cupcake ATMs, and the jingle that played when customers made a purchase, the brand briefly became a viral sensation on platforms like TikTok. However, as of December 30, the company’s website has ceased all operations, and there are no products available for sale.
Nelson, who sold Sprinkles to private equity firm KarpReilly LLC in 2012 after expanding the brand to a total of ten locations, had hoped for a different trajectory for her successful creation. KarpReilly, which has made significant investments across various food and beverage sectors, has not responded to inquiries about the reasons for this closure, leaving fans and patrons puzzled.
This closure is not an isolated incident but part of a larger trend where private equity firms acquire restaurant and retail brands, only to see them struggle financially. Outraged fans have taken to social media to connect Sprinkles' fate with other brands like Red Lobster and TGI Fridays, which have similarly faced financial distress after private equity acquisitions. The trend of private equity investment in the restaurant sector has surged dramatically, totaling $94.5 billion between 2014 and 2024 according to PitchBook data, raising concerns about the long-term impact of such arrangements on beloved brands like Sprinkles Cupcakes.
