Bakery Beloved by Celebrities Unexpectedly Closes All U.S. Locations After 20 Years

Sprinkles, a beloved bakery with a "cupcake ATM" concept, has closed all of its locations in the U.S. after 20 years in business.

The website now contains only a space to type an email. "We'll be right back," it says. According to People, Sprinkles became popular with celebrities. "After thoughtful consideration, we’ve made the very difficult decision to transition away from operating company-owned Sprinkles bakeries," the company told KTLA, which noted that the announcement sparked a backlash.

Sprinkles' Founder Called the Decision to Close the Bakeries 'Surreal'

The founder, Candace Nelson, announced the closure in an Instagram post. “A few days ago I found out that Sprinkles Cupcakes, the company I started in 2005 and then sold to private equity in 2012, will be closing its bakery doors today,” she wrote, calling it "surreal."

"Today is Sprinkles’ final day," she wrote. "As many of you know, I started Sprinkles in 2005 with a KitchenAid mixer and a big idea. Over the years, we expanded across the country and launched the Cupcake ATM."

"I sold Sprinkles in 2012 and have no ownership or operational involvement in the company," added Nelson. "Still, it’s surreal to see this chapter come to a close - and it’s not how I imagined the story would unfold. 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."

According to KTLA, "Nelson sold her business to private equity firm KarpReilly LLC in 2012." The company had at least nine locations in California and more throughout the U.S., according to CBS News.According to The Associated Press, the cupcake company became trendy enough at its height that it went viral on TikTok for its ATMs, which could be found at airports and other locations. The reason for the closure is not clear.

The company also had a location in Houston.

Some people were critical of the closure. "Selling to private equity for quick cash isn’t always the best thing," wrote one person on X.Some people wrote that they loved the cupcakes on X, but other people criticized Nelson for selling to a private equity firm and raised concerns about the employees.

Candace Nelson Explained Why She Sold Sprinkles

In another post, Nelson explained why she sold Sprinkles, "Finally opening up... about selling my company, Sprinkles Cupcakes. ????????I sold Sprinkles back in 2012. But based on my DMs, not many people know this," she wrote. "It makes sense, because I’ve NEVER talked openly about it on social media before!"

She said she considers herself a "creator, a founder. I love creating something out of nothing." When the business grew to 10 locations, it became "such an operational challenge," she said.

Nelson said in a video that she thought Sprinkles would keep growing and noted that she feels like she still has a connection with the business even though she sold it. "Today, my heart is with the Sprinkles employees," she added in a caption.

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