A once-celebrated bakery brand that helped redefine American dessert culture has quietly shut down all of its U.S. locations, according to its founder, ending a more than 20-year run that introduced millions of customers to gourmet cupcakes and novelty vending machines.
The closure came suddenly, with stores ceasing operations on Dec. 31, leaving employees and customers alike scrambling for answers. The news did not come from the company itself, but instead from its original creator, who said she only learned of the shutdown days before it happened.
The abrupt ending has sparked an outpouring of emotion online, particularly from former employees who say they were given little to no warning.
Founder Breaks the News Herself
Pastry chef and entrepreneur Candace Nelson confirmed the nationwide shutdown in a New Year’s Eve post on Instagram, writing that Dec. 31 marked the brand’s final day in business.
“I’m deeply grateful to the fans, customers, and community who showed up, celebrated with us, and made this part of their traditions,” she wrote. “And to the team who made it all happen. I’ll always be proud of what we built.”
Nelson made clear that she was no longer involved in day-to-day operations and had not been for years, adding that she found out about the closures only shortly before they occurred. Still, she described the moment as deeply personal and emotional.
A Career Pivot That Sparked a Food Phenomenon
Before entering the food world, Nelson worked as an investment banker. Her career path changed dramatically after she lost her job during the collapse of the dot-com bubble in the early 2000s.
Rather than returning to finance, she enrolled in pastry school and decided to pursue baking full time. That decision would ultimately lead to the creation of one of the most recognizable dessert concepts of the 21st century.
In 2005, Nelson and her husband, Charles Nelson, opened a small bakery in Beverly Hills. At the time, cupcakes were still largely seen as children’s party fare. Nelson’s vision — premium ingredients, elegant presentation, and adult flavor profiles — helped transform them into a gourmet indulgence.
Rapid Expansion and a Signature Innovation
As word spread, the bakery attracted long lines and celebrity attention. Expansion followed, first across California and then into other states, including Arizona, Florida, Texas, and Utah.
One of the brand’s most notable innovations was its round-the-clock cupcake vending machines, often referred to as “cupcake ATMs,” which allowed customers to purchase fresh desserts at any hour. The machines became a viral sensation and were widely credited with cementing the brand’s place in pop culture.
By the early 2010s, the business had grown far beyond its single-store origins, drawing interest from investors looking to capitalize on the cupcake craze.
A Sale — and a Turning Point
In 2012, Nelson sold the company to a private equity firm, stepping away from ownership and operations. In her recent social media posts, she emphasized that she has had no control or involvement in business decisions since that sale.
“I sold the company in 2012 and have no ownership or operational involvement,” she wrote. “Still, it’s surreal to see this chapter come to a close — and it’s not how I imagined the story would unfold.”
It is only at this point — halfway through the story — that the name of the company becomes clear.
The brand was Sprinkles Cupcakes, the upscale bakery chain widely credited with launching the modern gourmet cupcake movement.
Silence From the Company Itself
Despite the sweeping nature of the closures, the company has not issued a formal public statement. Several sections of its official website, including store locator pages, began displaying error messages shortly after the shutdown.
Attempts by multiple outlets to reach the company for comment were unsuccessful. Phone calls to former bakery locations reportedly went unanswered, adding to the confusion surrounding the closure.
The lack of official communication has fueled frustration, particularly among employees who say they were caught off guard.
Employee Backlash Erupts Online
Social media comment sections tied to the brand’s recent posts quickly filled with messages from individuals claiming to be former employees. Many accused the company of providing only a single day’s notice before closing stores.
“Thanks for the one-day notice of unemployment and no severance,” one commenter wrote.
Another added, “Cupcakes are sweet. One-day layoff notices are not.”
Some employees described learning of the shutdown only after arriving at work or receiving last-minute messages from managers, a scenario labor advocates say is becoming increasingly common in sudden retail closures.
Founder Expresses Support for Workers
Nelson addressed the employee backlash directly, saying her “heart is with the Sprinkles employees” who were affected by the shutdown.
“Even though I sold the company over a decade ago, I still have such a personal connection to it,” she wrote. “This isn’t how I thought the story would go.”
She said she had always envisioned the bakery continuing to grow and remaining a permanent fixture in the dessert world.
“I thought it was going to be my legacy,” Nelson added, noting that the ending was especially difficult to process.
A Broader Shift in the Bakery Industry
Industry analysts say the closure reflects broader challenges facing boutique food chains, including rising ingredient costs, higher rents, labor shortages, and changing consumer habits.
While cupcakes once dominated social media feeds and shopping districts, newer dessert trends — from specialty donuts to artisanal cookies — have crowded the market. At the same time, inflation has pushed many consumers to cut back on discretionary spending.
Private equity ownership can also accelerate closures when profitability declines, as firms often move quickly to limit losses.
An Emotional Goodbye
Nelson said it was difficult to put her feelings into words, but she emphasized gratitude over regret.
“One thing is for sure,” she wrote. “I am incredibly grateful for all of the joy our cupcakes brought to millions of people over the years.”
For many customers, the sudden disappearance of Sprinkles Cupcakes marks the end of an era — one defined by pastel boxes, midnight cupcake runs, and a brand that once made a simple dessert feel new again.
As former employees search for new jobs and longtime fans reminisce online, the story of the bakery’s rise and abrupt fall stands as a reminder of how quickly even iconic brands can vanish from the American retail landscape.
Emily Johnson is a critically acclaimed essayist and novelist known for her thought-provoking works centered on feminism, women’s rights, and modern relationships. Born and raised in Portland, Oregon, Emily grew up with a deep love of books, often spending her afternoons at her local library. She went on to study literature and gender studies at UCLA, where she became deeply involved in activism and began publishing essays in campus journals. Her debut essay collection, Voices Unbound, struck a chord with readers nationwide for its fearless exploration of gender dynamics, identity, and the challenges faced by women in contemporary society. Emily later transitioned into fiction, writing novels that balance compelling storytelling with social commentary. Her protagonists are often strong, multidimensional women navigating love, ambition, and the struggles of everyday life, making her a favorite among readers who crave authentic, relatable narratives. Critics praise her ability to merge personal intimacy with universal themes. Off the page, Emily is an advocate for women in publishing, leading workshops that encourage young female writers to embrace their voices. She lives in Seattle with her partner and two rescue cats, where she continues to write, teach, and inspire a new generation of storytellers.
