May 15, 2014
Crumbs founder bakes up new career
Eleven years after founding the cupcake phenom along with his wife, Jason Bauer is jumping into real
estate, teaming up with a Douglas Elliman executive to launch a residential, commercial and investment
sales firm.
By Aaron Elstein
Jason Bauer, co-founder of Crumbs Bake Shops, is starting a real estate firm with a Douglas Elliman
executive. Photo: Associated Press
The founder of Crumbs Bake Shop Inc. is switching from selling cupcakes to cooking up some real estate
sales. Jason Bauer, who started Crumbs with his wife back in 2003, announced Thursday the launch of
Voda Bauer Real Estate. The firm, started with Douglas Elliman executive Avi Voda, will handle
residential, commercial and investment sales.
"We have agents and exclusives and are ready to go," said Mr. Bauer.
Mr. Bauer, 44, isn't entirely new to the real estate world. While his wife Mia devised Crumbs' recipes for
oversized red velvet cupcakes and other treats, Mr. Bauer worked behind the scenes handling business
matters, such as finding new locations for what was once a fast-growing chain. Crumbs started as a
single shop on the Upper West Side and at one point expanded to more than 20 stores in Manhattan
and nearly 50 elsewhere.
The Bauers sold half their stake in 2008 for $10 million. The entire operation was acquired in 2011 for
$66 million by a holding company, which subsequently took it public.
But Crumbs has struggled mightily since listing on Nasdaq, piling up $22 million in losses over the past
two years. Its most recent annual report contains a warning from its accountant saying there is
"substantial doubt" the company can continue. Crumbs didn't respond to a request for comment about
the warning, although in a March conference call the company's finance chief said "discussions with
potential sources of capital have and will continue to take place."
The Bauers stopped working at their company in late 2012 and a new management team is closing
stores and trying to sell Crumbs-branded products in grocery stores. But the founding family hasn't cut
ties completely; Jason and Mia still control 8.5% of Crumbs' shares, which currently fetch less than 40
cents apiece.
"I've moved on," Mr. Bauer said.