Sprinkles cupcakes fires staff on NY Day - Proving you cannot have your cake and now beat it

Los Angeles, CA – January 1, 2026 – In a bittersweet farewell to two decades of gourmet indulgence, Sprinkles Cupcakes has permanently closed all its company-owned bakery stores across the United States as of December 31, 2025. The chain, renowned for pioneering the upscale cupcake trend and its innovative 24/7 cupcake ATMs, leaves behind a legacy of sweet treats that once captivated dessert lovers from coast to coast.

Founded in 2005 by Candace Nelson, Sprinkles grew from a single Beverly Hills storefront into a national phenomenon with locations in multiple states. Nelson, who sold the company to private equity firm KarpReilly in 2012 and has had no operational involvement since, expressed her dismay on social media just days before the closures. In an Instagram post, she lamented the loss of her "legacy," describing the business as her "baby" and sharing her shock at the abrupt decision. "I was informed of it just a few days prior," Nelson stated, reflecting on the chain's 20-year run that popularized gourmet cupcakes in American culture.

No official reason was provided by the company for the shutdown, but industry observers point to a strategic pivot away from physical retail under private equity ownership. Amid broader challenges in the gourmet dessert market—including shifting consumer preferences toward healthier or more affordable options, rising operational costs, and competition from other bakeries—the move appears to signal the end of Sprinkles' brick-and-mortar era. The closures have hit employees hard, with reports indicating staff at various locations received only one day's notice and no mention of severance packages.

The shutdown extends beyond the bakeries to include all 25 of Sprinkles' signature cupcake ATMs—vending machines that dispensed fresh cupcakes around the clock and became a hallmark of the brand's innovation. While some initial reports were unclear on their fate, confirmations from multiple sources indicate these automated dispensers are also being decommissioned alongside the stores.

Online reactions have poured in on platforms like X (formerly Twitter), blending nostalgia, disappointment, and sharp criticism. Many fans expressed sadness over the end of an iconic brand, reminiscing about the ATMs and gourmet flavors. "Remember Sprinkles Cupcakes and their famous ATMs? The iconic bakery chain is permanently closing ALL locations! What does this mean for the gourmet dessert trend? A sweet dream ends," posted user @NovaPressTT. Others urgently sought alternatives, with one user pleading for recipes like the vegan red velvet now that the stores are gone. (Note: No official recipes have been released by the company.)

The Sprinkles Cupcakes store in Downtown Los Angeles. File photo.

Criticism has largely targeted private equity's role in the closure, with users blaming KarpReilly for the sudden decision and its impact on workers. "Sprinkles Cupcakes founder laments about losing her 'legacy' as she announces store closing. But the reality — she sold her business to private equity for tens of millions of dollars, while employees were given 1 day notice of termination. Private equity needs to die. ," wrote journalist James Li (@5149jamesli) in a viral post that garnered over 9,000 likes. Another user, @tensmoonwalk, directed ire at Nelson herself: "The person who started Sprinkles cupcakes going on tiktok to whine about the company she sold to Private Equity closing has some audacity. Bitch, you are the problem, enjoy being rich and dont start any more businesses." Similarly, @JulFal called out the founder's public mourning: "Seeing stuff online about Sprinkles cupcakes selling and I find it weird that the founder is crying on here calling the buisness her baby. It’s disingenuous to sell your 'baby' to private equity firm and then go online sobbing about it closing. Maybe that’s a a hot take but ."

Not all sentiments were sentimental; some users were unsurprised, citing a perceived decline in quality and high prices. "A couple months ago a neighbor brought over some Sprinkles cupcakes and they were disgusting. Maybe they were good back in the day but these were not it. Not surprised they’re closing ," shared @KristinEliz23. Echoing this, @meganannnn29 added: "I question the taste of people who are upset about Sprinkles cupcakes closing. They taste like they are made in a grocery store? There are better things out there folks." Others highlighted the human toll, noting instances where laid-off employees resorted to selling store supplies to make ends meet post-closure. Overall, the online discourse leans negative toward corporate decisions, tempered by fondness for the brand's heyday.

On Los Angeles' Westside—encompassing areas like Beverly Hills, Westwood, Brentwood, Santa Monica, and Culver City—Sprinkles had two key locations prior to the closures: the original at 9635 S. Santa Monica Blvd. in Beverly Hills, CA 90210, and another at The Grove, 189 The Grove Drive, PS-01, Los Angeles, CA 90036. Nearby spots like Downtown LA and Manhattan Beach were close but not strictly Westside. As of January 1, 2026, no Sprinkles locations remain open anywhere in the U.S.

While the company has not announced any future plans, the closure marks a poignant chapter's end for a brand that once symbolized dessert innovation. For those seeking alternatives on the Westside, options like SusieCakes in Brentwood (11708 San Vicente Blvd., Los Angeles, CA 90049) or Elysee Bakery & Cafe in Westwood (1099 Gayley Ave., Los Angeles, CA 90024) continue to serve highly rated treats.