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Sprinkles Cupcakes, 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 closure in an Instagram video, saying Wednesday, Dec. 31, marked Sprinkles’ “last day of business.”
“A few days ago I learned that Sprinkles Cupcakes, the company I started in 2005 and then sold to private equity in 2012, is closing its bakery doors today,” Nelson said. “Just saying that out loud is completely surreal.”
Although she has had no operational involvement with the company since its sale in 2012, Nelson said she never thought the brand would end up this way.
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A closed Sprinkles Cupcakes bakery in Highland Village, Houston, Texas, 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 it would be my legacy.”
Nelson also expressed his gratitude to the company’s customers and employees.
“I am deeply grateful to the fans, customers and community who showed up, celebrated with us and made Sprinkles part of their traditions – and to the team that made it all possible,” she wrote in the post’s caption. “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. (Saul Loeb/AFP/GettyImages/Getty Images)
Founded in Beverly Hills in 2005, Sprinkles grew into a national brand with more than two dozen stores across six states and Washington, D.C., along with approximately two dozen cupcake ATMs. SFGATE reported.
The company was sold to private equity firm KarpReilly Capital Partners in 2012 for an undisclosed amount.
“After careful consideration, we have made the very difficult decision to transition from operating company-owned Sprinkles bakeries,” said a spokesperson for Sprinkles Cupcakes. told KTL.
Candace Nelson in the season finale of Next Level Baker, airing December 18, 2025. (FOX via Getty Images/Getty Images)
According to KTLA, it remains unclear what will happen to the company’s cupcake ATMs.
The closure has sparked swift reactions from Sprinkles employees, with several employees expressing their frustration in comments on the company’s Instagram page.
“Cupcakes are sweet. A one-day resignation letter is not. Yep, 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)
“Thank you for the one day notice without dismissal!” said another.
“PLEASE GIVE ALL EMPLOYEES COMPANYWIDE 1 DAY NOTICE THAT THEY NO LONGER HAVE JOBS! Sprinkles will close all locations on 12/31. HAPPY NEW YEAR!!” another user wrote.
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