Here's Why the Popular Chain Sprinkles Cupcakes Closed

If you are a fan of the tasty bakery Sprinkles Cupcakes, you may be disappointed to learn that it is no longer in business. The popular cupcake store was a staple for many, but it ceased operations on Dec. 31, 2025.

Sprinkles Cupcakes was founded by Candace Nelson in Beverly Hills, Calif., back in 2005. The cupcake brand was the first to offer customers a 24-hour ATM that dispensed the delicious cupcakes, which quickly became a novelty after it was launched in 2012. Sprinkles Cupcakes was also sold to a private equity firm in 2012, per KTLA News. So, why did it close?

Candace Nelson revealed in a post on Instagram on Dec. 31 that Sprinkles Cupcakes was closing. The cupcake entrepreneur said that she'd learned about the store's closing that same day, which she said was "completely surreal."

"Today is Sprinkles’ final day," reads the caption. As many of you know, I started Sprinkles in 2005 with a KitchenAid mixer and a big idea. Over the years, we expanded across the country and launched the Cupcake ATM."

"I thought Sprinkles would keep growing and be around forever," she said. "I thought it was going to be my legacy."

According to LA Magazine, the first Sprinkles Cupcakes sold 1,000 cupcakes a day for $3.25 each, including flavors like chai latte and candy corn cupcakes. The business had $44.5 million in sales back in 2024.

"I sold Sprinkles in 2012 and have no ownership or operational involvement in the company," the post continued. "Still, it’s surreal to see this chapter come to a close — and it’s not how I imagined the story would unfold. I’m 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 who made it all happen. I’ll always be proud of what we built. Today, my heart is with the Sprinkles employees."

Employees for the company said they were given little warning about the sudden closure. One Sprinkles Cupcakes' employee said they were only given a day's notice about the closure.

“One day notice of losing my job — how will I take care of my five kids now?"

"Even though I sold the company over a decade ago, I still have such a personal connection to it," Candace said. "This isn’t how I thought the story would go. ... My heart is truly broken for the team and for everyone who’s feeling this loss."

Candace added that as she learned of the "abrupt ending," it has been "painful."

"Especially for the people who worked so hard to build Sprinkles and who deserved so much better," she said.

The company released a statement noting the store's closure with little explanation.

"After thoughtful consideration, we’ve made the very difficult decision to transition away from operating company-owned Sprinkles bakeries."

Sprinkles' employees also claimed that they received no severance pay from the company.