There's no picking up the Crumbs now.

The world's largest cupcake store that rose to fame satisfying America's sweet tooth for decades has crumbled.

On Monday, Crumbs Bakeshop announced that it is closing its 48 stores across the U.S. as it files for bankruptcy.

The famous bakeshop notified employees that it has been forced by circumstances to close shop, but would immediately attend to their dislocation even as it examines its "limited remaining options."

Like Us on Facebook

Business insiders say the New York-based, Nasdaq-listed cupcake maker has been losing money since it went public in 2011.

Its share prices had plunged from a high of US$14 in July 2011 to just 27 cents in recent weeks after Nasdaq announced it was delisting the company for failure to meet benchmarks for its market cap.

Securities filings showed that the company posted losses of US$10.3 million in 2012 and US$18.2 million in 2013, while its cash flow was just at US$893,000 at the end of last year.

In the last quarter of 2013, Crumbs decided to close nine of its non-performing stores and shut down six more stores early this year.

Founded in 2003 by Jason and Mia Bauer, Crumbs became famous for its 4-inch thick cupcakes topped with frostings in such flavors as red velvet, caramel macchiato and cookie dough.

From its first shop on Manhattan's Upper West Side, Crumbs rode on the cupcake craze to open 48 stores in 10 states and the nation's capital.

A shell company bought the cupcake maker in 2011, which led to its public listing that same year.

However, the American public's waning interest in cupcakes in recent years, coupled with competition posted by newer food chains such as Sprinkles and Magnolia Bakery, had sent Crumbs' sales figures gradually crumbling to its eventual demise this week.

TagsCrumbs Bakeshop Inc, Crumbs cupcakes