Sprinkles Cupcakes Founder Mourns Company Shutdown After Starting in Her Kitchen

Sprinkles Cupcakes, the bakery chain known for its cupcake ATMs and iconic storefronts, has confirmed the permanent closure of all its locations. The news came via a statement from founder Candace Nelson, who had sold the company in 2012 according to reports.

The closures began immediately after the announcement on December 30, 2025 according to the announcement. The company’s website no longer lists active locations or offers online ordering according to the website update.

Nelson, who started the company in 2005 in a Beverly Hills kitchen, said the closure was unexpected. She had envisioned the brand as a lasting legacy but expressed sadness over its end according to her statement.

Why Did This Happen?

Sprinkles was sold to private equity firm KarpReilly LLC in 2012 according to business reports. KarpReilly owns a portfolio of food and beverage businesses, including Salt and Straw and Wilde Chips. No official reason was given for the closure according to industry sources.

Private equity involvement in the restaurant sector has grown significantly over the last decade. PitchBook data shows $94.5 billion in investments between 2014 and 2024. Some critics argue that this trend has led to the decline of once-popular brands according to market analysis.

The broader cupcake market has seen ups and downs, with some competitors like Georgetown Cupcakes and Crumbs adapting to the shifting landscape according to industry reports.

How the Closure Affects the Cupcake Market

Sprinkles was a pioneer in the 2000s cupcake boom, popularizing the concept of vending machines for desserts. Its closure marks the end of one of the last major names from that era according to industry observers.

The company’s cupcake ATMs became a viral hit, especially for the upbeat jingle played during dispensing. Fans on social media expressed nostalgia and disappointment at the news.

What Are Analysts Watching

Analysts are observing how the market will respond to the absence of a once-popular brand. The closure adds to a list of 2025 restaurant closures, including Starbucks and Wendy’s, which shuttered hundreds of locations.

Some industry experts suggest that the trend of private equity-led closures could continue in 2026, especially if economic conditions remain challenging according to financial analysts.

Nelson, who no longer has ownership or operational role in Sprinkles, has moved on to other ventures, including Pizzana and CN2 Ventures. She has also authored a book for entrepreneurs according to industry sources.

With the end of Sprinkles Cupcakes, investors and industry watchers are left to assess the future of the cupcake market and the role of private equity in shaping restaurant brands.