Retail

New Crumbs Owners Fight to Scrap License Agreements

November 17, 2014

When Crumbs Bake Shop Inc. filed for bankruptcy this past summer and sold off the majority of its assets, the company thought it had put to rest a number of licensing agreements that gave third parties the right to sell baked goods under the Crumbs name, Dow Jones Daily Bankruptcy Review reported today. According to a bankruptcy judge's recent ruling, the sale didn't actually relinquish those rights, and the Crumbs bankruptcy estate can still earn royalties under the agreements. Now, the cupcake chain's new owners — a collaboration between TV personality Marcus Lemonis and Dippin' Dots owner Fischer Enterprises — have appealed the ruling to stop other companies from making money off the Crumbs brand.

Dahl's Files $41 Million Bankruptcy

November 11, 2014

Dahl's Foods Inc., an 83-year-old Des Moines-based grocery store chain, will disappear from the local landscape as a locally owned company, The Des Moines Register reported today. The 10-store chain filed a $41 million bankruptcy petition in federal court on Sunday asking that it be allowed to reorganize and sell its stores. The likely buyer will be its supplier or another grocery company. The company is also asking that the process be moved along quickly. Dahl's said yesterday that Kansas City, Kan.-based Associated Wholesale Grocers (AWG) plans to buy Dahl's assets and rebrand the stores. AWG is a retailer-owned grocery cooperative and grocery distributor. Court filings show that AWG has offered to buy the chain's assets for a base price of $4.8 million, which could be adjusted depending on the value of inventory and other items. Under one scenario, one of AWG's co-op members could own the stores, with AWG funding the acquisition. AWG said that it plans to rebrand the remaining Dahl's stores and remodel and update the properties. The new brand was not identified.