‘Sprinkles’ cupcakes has called it quits on its own retail locations. The 20-store chain owned by private equity investors KarpReilly announced the closure of all company owned locations and ATM effective January 1st, 2026.
Founded in Beverly Hills in 2005 by Candice Nelson and her husband, Charles, Sprinkles pioneered the gourmet cupcake craze. The company introduced the first “cupcake ATM” at its Beverly Hills location and continued to grow until it was acquired in 2012 by private equity firm KarpReilly.
In its announcement, the company stated that it is “transitioning away from operating company-owned Sprinkles bakeries.” Franchise stores operate under a separate operating agreement and are expected to continue operations, though the company was not clear in its announcement.
QKarpReilly has evolved the Sprinkles brand from a small mom-and-pop bakery into a global brand. In 2023, the company partnered with Target and Walmart to produce a permanent line of chocolates based on the most popular cupcake flavors, Red Velvet and Dark Chocolate. New products under the Sprinkles umbrella include a line of sugar-free pudding and pie mixes to be sold at supermarkets nationwide. The shift includes partnerships with Williams-Sonoma for a line of cake mixes.
Candice Nelson expressed surprise at the company’s decision to move away from brick-and-mortar retail. In her first public statements since learning of the closures, Nelson said: “It’s surreal to see this chapter come to a close, and it’s not how I imagined the story would unfold.” She added, “I thought Sprinkles would keep growing and be around forever. I thought it was going to be my legacy.”
Unfortunately for Nelson, she sold all her rights to the company in 2012 and has had no ownership or operational involvement since. Although the company has not made any official announcement regarding the closures, an internal memo to employees cited “financial conditions due to unforeseen business circumstances.”
According to the article, she sold her rights, which makes all her comments null and void.
The photos shown aren’t worth more than what someone could create on their own.
While it is understanable to feel sympathy that the business didn’t flourish, it wasn’t on those that truly contributed to this community.
In the end, the real problem is West Hollywood’s City Council and the property owners’ increases, which devasted this community causing may comunities to leave, become insolvent, or bankrupt.
It’s called greed and the pursuit of profit at all costs—and it will always be one’s downfall.
This closure made national headlines.
Great product, but $66.00+ for a dozen cupcakes is insane.