That’s the way the cupcake crumbles.
Sprinkles, the iconic California cupcake company, has announced a “winding down”of operations at its remaining 15 retail locations, blindsiding employees last minute with the not-so-sweet news.
Salty employees got the notice on Dec. 30, saying Sprinkles would start an “orderly wind-down” of the company beginning Dec. 31.
Employees were shocked and took to social media to lament the sudden announcement.
Below a comment on the Sprinkle Instagram account saying, “Ring in the New Year with Style! Enjoy our NYE Dozen,” were a flurry of comments from disgruntled employees.
“Cupcakes are sweet. One-day layoff notices are not. Yikes, what a bold way to celebrate 20 years and ring in the new year,” one comment said.
“One day notice is crazy. Just used us for the holidays then tossed us aside,” said another comment with 108 likes.
“Fr like a day notice is wild work! Some of us have things to pay for and aren’t a multi million dollar company that couldn’t care less abt their employees!” Added another.
“One day notice of losing my job how will I take care of my 5 kids now,” said another comment on the Sprinkles site.
“Thanks for the one day notice of unemployment and no severance!” Another employee added.
Kimberly Salgado, who had worked at the Irvine Sprinkles for three years, said the news was hurtful
“The higher-ups knew for sure that this was going to happen, they just didn’t tell us. 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 Years Eve. That feels like such betrayal to me,” Salgado told The Post.
“Saying goodbye then today, there was many tears. A lot of us lost our means of living and we are no longer coworkers and that’s very sad,” Salgado added.
Founder Candace Nelson opened her first Sprinkles shop in Beverly Hills in 2005 — catapulting the simple cupcake to a viral trend, which reached a fever pitch when she introduced the cupcake ATM in 2012.
The company was an instant sensation. Just eight months after opening, Barbra Streisand sent a box of Sprinkles cupcakes to Oprah Winfrey, who instantly endorsed the cupcake company on her show.
Blocks-long lines formed outside the modern, minimalist shops slinging cupcakes that promised high-quality ingredients packed into an Instagrammable colorful cake-for-one.
The cupcake ATMs created even more hubbub, as sweets-lovers flocked to magical cupcake machines that dispensed a sugary treat right there in the street.
At that time, a cupcake ATM could hold 760 cakes in a variety of flavors that cost customers $4.25 a pop, according to Conde Nast Traveler.
The price per cupcake increased by a quarter in 2022, as the company navigated inflation costs, CFO Drive reported. A single cupcake at the Manhattan Beach location is listed between $5.25 and $5.50 currently.
The blow-out success of the company paved the way for celebrity bakers and famous bake shops that sprung from Sprinkle’s success — like Baked by Melissa, Crumbs Bake Shop and Georgetown Cupcake.
Nelson sold the company to a private equity firm in 2014 and has had no involvement since.
She took to Instagram Wednesday to share her complicated feelings after finding out just a few days ago that her once-successful brainchild will be “closing its bakery doors today.”
“This isn’t how I thought the story would go. I thought Sprinkles would keep growing and be around forever. I thought it would be my legacy,” Nelson said in the video.
The closure notice cited that the company made the decision to shutter because of “financial conditions due to unforeseen business circumstances.”
“The wind-down process will be conducted in an orderly manner to address remaining operational obligations and preserve value to the extent practicable,” the notice added.
The sudden closure was a stark pivot from a recent announcement on their website stating they were expanding into the Bay Area.
“Get ready, Bay Area! Sprinkles is bringing its iconic cupcakes and handcrafted treats to downtown Burlingame in early 2026,” the website said.
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“Stay tuned for our official opening date and grand opening details!”
In February 2021, Sprinkles expanded its business model and began offering franchise opportunities. The first of those locations opened in Riverton, Utah, in 2022.
“I’m deeply grateful to the fans, customers, and community who showed up, celebrated with us, and made Sprinkles part of their traditions – and to the team who made it all happen. I’ll always be proud of what we built, Nelson wrote on Instagram.
“Today, my heart is with the Sprinkles employees,” she added.
/primar
Closing locations include: Beverly Hills, Newport Beach, Dallas, Scottsdale, La Jolla, Washington DC, Grove Los Angeles, Downtown Los Angeles, Tampa, Disney Springs, Austin, Plano, Rice Village, Manhattan Beach, and Irvine. Three additional commissary locations in Los Angeles, Las Vegas and Dallas will also shutter, according to the company missive.
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