Crumbs Bake Shop Inc. may proceed with plans to sell itself at a bankruptcy auction in August, a judge ruled Thursday, despite an objection from a newly formed creditor committee that more time is needed to look for prospective bidders, the Wall Street Journal reported on Friday. An investor group that includes Dippin’ Dots owner Fischer Enterprises and reality TV show host Marcus Lemonis has agreed to serve as the lead bidder at an Aug. 21 auction. The group’s approximately $6.5 million credit bid would forgive loans Fischer and Lemonis have extended to Crumbs, including a $1.1 million loan that is funding the company’s chapter 11 proceeding. Bankruptcy Judge Michael Kaplan on Thursday approved the auction timeline along with bidding procedures that include an $82,500 breakup fee to Lemonis and Fischer if a competing offer trumps them at the auction.
