Sprinkles Cupcakes permanently closing all stores after 20 years in operation, founder says

Sprinkles Cupcakes, the bakery chain best known for its cupcake ATMs, is permanently closing all of its stores.

Candace Nelson, the company's founder and former owner, confirmed the shutdown in an Instagram video, saying Wednesday, Dec. 31, marked Sprinkles' "final day" of operations.

"A few days ago, I learned that Sprinkles Cupcakes, the company I started in 2005 and then sold to private equity in 2012, will be closing its bakery doors today," Nelson said. "Just to say that out loud is completely surreal."

Although she has had no operational involvement in the business since selling it in 2012, Nelson said she never imagined the brand would end this way.

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"I thought Sprinkles would keep growing and be around forever," Nelson said. "I thought it was going to be my legacy."

Nelson also expressed gratitude to the company's customers and employees.

"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," she wrote in the post’s caption. "I’ll always be proud of what we built."

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Founded in Beverly Hills in 2005, Sprinkles grew into a national brand with more than 20 stores across six states and Washington, D.C., along with roughly two dozen cupcake ATMs, SFGATE reported.

The company was sold in 2012 to private equity firm KarpReilly Capital Partners for an undisclosed amount.

"After thoughtful consideration, we’ve made the very difficult decision to transition away from operating company-owned Sprinkles bakeries," a spokesperson for Sprinkles Cupcakes told KTLA.

It remains unclear what will happen to the company’s cupcake ATMs, according to KTLA.

The shutdown has sparked swift backlash from Sprinkles' employees, with several workers voicing frustration in comments on the company's Instagram page.

"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 user wrote.

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"Thanks for the one day notice of unemployment and no severance!" another said.

"GAVE ALL EMPLOYEES COMPANY WIDE 1 DAY NOTICE THAT THEY NO LONGER HAVE JOBS! Sprinkles is closing all locations 12/31. HAPPY NEW YEAR!!" another user wrote.

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Sprinkles did not immediately respond to FOX Business' request for comment.