Viral bakery and cupcake ATM phenomenon Sprinkles Cupcakes is closing its doors 13 years after the owner sold it to private equity. Founder Candace Nelson announced the move in social media videos on Wednesday, leaving fans devastated.
Those familiar with the pattern of private equity buying up and destroying beloved brands, however, are not surprised—and not too happy with Nelson.
Sprinkles Cupcakes becomes another private equity casualty
On Instagram and TikTok, Nelson (@candacenelson) revealed that all Sprinkles Cupcakes shops would be shut down by Thursday. She said she learned the news herself just a few days prior and was struggling with some difficult emotions.
“Just to say that out loud is completely surreal,” she said of the closure announcement.
“I thought Sprinkles would keep growing and be around forever. I thought it was going to be my legacy.”
@candacenelson Today is Sprinkles’ final day. 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 sold Sprinkles in 2012 and have no ownership or operational involvement in the company. 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. 💔 If you have stories about how Sprinkles Cupcakes added a little extra sweetness, comfort, or connection to your life, please share them in the comments. #sprinklescupcakes #sprinkles ♬ original sound – Candace Nelson
She asked Sprinkles fans to share their cupcake stories in the comments, and many obliged.
“My best friend and I planned and took road trips up to LA just to go to Sprinkles,” wrote @theycallmesto on Instagram. “It was a highlight of our high school years. Car rides, adventures in a different city, the cutest cupcakes.”
However, others instead focused in on the bit about how she sold the company to private equity in 2012.
@marielenuh #sprinklescupcakes #privateequity #themoreyouknow💫 ♬ original sound – mars
“If you wanted a legacy, private equity was a bad choice,” said TikToker @mskarlaren.
“You betrayed that legacy by selling to private equity, doesn’t make much sense to mourn it now,” @noonaaa503 remarked.
“Seeing stuff online about Sprinkles cupcakes selling and I find it weird that the founder is crying on here calling the buisness [sic] her baby,” @JulFal opined on X. “It’s disingenuous to sell your ‘baby’ to private equity firm and then go online sobbing about it closing.”
The backlash on the subject of private equity has been intense enough to spark hope for a “reckoning” on the issue. These firms famously killed Toys “R” Us and have led to the closures of many other businesses, leading to accusations that they intentionally strip and run companies into the ground in order to pick apart the wreckage.
Candace Nelson explains why she sold Sprinkles
This isn’t the first time Nelson has faced questions over her decision to sell Sprinkles Cupcakes. Currently, a pinned post on her Instagram account from March 2025 explains why she did it.
“I consider myself a creator. A founder,” she said. “I love creating something out of nothing.”
“Once the business got to 10 locations nationwide and one international franchise, as well as a cupcake ATM that was growing, it just became such an operational challenge.”
Nelson also pointed to her growing kids as a reason for selling a business that increasingly required travel.
“As they got older and they had school commitments and sports and that sort of thing, I really wanted them to have roots and be able to keep those commitments,” she added. “That was something I never had as a child.”
Nelson went on to found the pizza chain Pizzana and become a judge on cooking reality shows like Cupcake Wars.
The Daily Dot has reached out to Candace Nelson for comment via Instagram.
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