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Cupcakes with sprinkles, the bakery chain best known for its cupcake ATMs, is permanently closing all of its stores.
Candace Nelson, the company’s founder and former owner, confirmed the shutdown in an Instagram video, saying Wednesday, Dec. 31, marked Sprinkles’ “last day” of operations.
“A few days ago, I learned that Sprinkles Cupcakes, the company I started in 2005 and then went private in 2012, I’m going to be closing the doors to my bakery today,” Nelson said. “Just saying it out loud is completely surreal.”
Although he has had no operational involvement in the business since selling it in 2012, Nelson said he never imagined the brand would end up this way.
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A closed Sprinkles Cupcakes bakery in Highland Village, Houston, Texas on December 31, 2025. (Reginald Mathalone/NurPhoto via Getty Images/Getty Images)
“I thought Sprinkles would continue to grow and be around forever,” Nelson said. “I thought that would be my legacy.”
Nelson also expressed gratitude to the company’s customers and employees.
“I am deeply grateful to the fans, customers and community that showed up, celebrated with us and made Sprinkles a part of their traditions, and to the team that made it possible,” he wrote in the caption of the post. “I will always be proud of what we built.”
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A box of Sprinkles Cupcakes in the Georgetown neighborhood of Washington, DC, August 2, 2012. (Sulish Loe/AFP/GETTYimages/gettty images)
Founded in Beverly Hills in 2005, Sprinkles has grown into a national brand with more than 20 stores in six states and Washington, DC, along with roughly two dozen cupcake ATMs. SFGATE reported.
The company was sold in 2012 to private capital firm KarpReilly Capital Partners for an undisclosed amount.
“After thoughtful consideration, we have made the very difficult decision to exit company-owned Sprinkles bakeries,” said a spokesperson for Sprinkles Cupcakes. he told KTLA.
Candace Nelson in the season finale episode “Next Level Baker” which aired on December 18, 2025. (FOX via Getty Images/Getty Images)
It’s still unclear what will happen to the company’s cupcake ATMs, according to KTLA.
The shutdown has sparked a swift backlash from Sprinkles employees, with several workers expressing frustration in comments on the company’s Instagram page.
“Cupcakes are sweet. One-day layoff notices are not. Wow, what a bold way to celebrate 20 years and ring in the new year,” one user wrote.
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A close-up of a cupcake ATM at Sprinkles cupcakes in San Ramon, California in June 2022. (Smith Collection/Gado/Getty Images/Getty Images)
“Thanks for the notice of a day of unemployment and no compensation!” said another.
“GAVE ALL COMPANY EMPLOYEES 1 DAY NOTICE THAT THEY ARE NO LONGER EMPLOYED! Sprinkles is closing all locations on 12/31. HAPPY NEW YEAR!!” another user wrote.
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Sprinkles did not immediately respond to FOX Business’ request for comment.
