Sprinkles Cupcakes Has Suddenly Shuttered Doors After 20 Years, Leaving Customers And Employees Shocked

Sprinkles Cupcakes — a bakery with brick-and-mortar stores and cupcake vending machines across the United States — has suddenly closed, according to a TikTok video from Candace Nelson, who founded the company in 2005. The announcement was posted on December 31, and was the first time customers had heard about the closing. Employees were only informed the day prior in an email. Nelson sold the company in 2012 and no longer owns or runs any part of the company, according to the caption that accompanied her video.

Nelson seemed just as surprised as the bakery's customers and employees when she made the video announcing the closing of the business, saying she had only learned of the closure a few days before. She expressed a mixture of disbelief and nostalgia, reflecting on the company's journey, calling the closing "completely surreal." "I didn't think this was how the story would go," she said in the video. "I thought Sprinkles would keep growing and be around forever. I thought it was going to be my legacy."

According to news reports, employees were abruptly left without jobs or health insurance. Customers and employees alike want answers to why the bakery closed so suddenly — but instead of resolution, they're being left with more questions. The company's website only says "We'll be right back!" with a cryptic password entry.

Sprinkles operated 21 stores, 25 vending machines, and employed hundreds of workers. A former employee shared that those who worked for the company did not receive severance pay from Sprinkles. Many critics have taken issue with Nelson's post, saying her focus on private equity and her legacy seemed to overshadow concern for employees suddenly left without jobs. Another employee took to Reddit saying, "Corporate gave us no time to prepare and have gone radio silent on everyone." Sprinkles Cupcakes LLC sent an email to employees on December 30, 2025, stating that the closing was "made after careful consideration of the Company's financial condition due to unforeseen business circumstances."

Sprinkles Cupcakes isn't the only chain to suffer from tough economic circumstances recently. The number of TGI Fridays locations in the U.S. has dwindled to less than 100, Hooters filed for bankruptcy in 2025, and Boston Market has reported troubles with the Colorado Department of Revenue. Even as some restaurants find ways to survive the challenging economy, fans and employees alike are disappointed that Sprinkles Cupcakes was not as fortunate.