Sprinkles Cupcakes, the gourmet cupcake chain founded in 2005 by Candace Nelson, has announced the closure of all its locations effective December 31, 2025. The closure marks a significant turn for the brand, which gained popularity for its high-quality, scratch-made sweets and innovative offerings, including the world’s first cupcake ATM.
Nelson shared the news in an emotional Instagram video, reflecting on her deep connection to the company she started. “A few days ago, I learned that Sprinkles Cupcakes… will be closing its bakery doors today,” she stated, highlighting the unexpected nature of the decision. Nelson, who transitioned from investment banking to baking, opened the first Sprinkles store in Beverly Hills, quickly attracting a celebrity clientele.
The chain, which expanded to operate 21 stores and 25 ATMs across several states, was sold to the private equity firm KarpReilly LLC in 2012. While the exact terms of the sale remain undisclosed, KarpReilly has managed a diverse portfolio that includes various consumer growth companies. As of this week, Sprinkles Cupcakes was no longer listed as part of their investments.
“I thought Sprinkles would keep growing and be around forever,”
Nelson expressed, sharing her disappointment and gratitude for the joy the brand brought to customers over the years. Since its inception, Sprinkles has pioneered the specialty dessert market, inspiring similar businesses across Southern California.
The closure decision was communicated to employees through a statement, which noted that “after careful and thoughtful consideration,” the company decided to transition away from operations. An employee at the Scottsdale store confirmed that no new orders were being accepted as of Wednesday morning.
Sprinkles Cupcakes made its name not only through traditional retail locations but also through innovative concepts like the cupcake ATM, which dispensed fresh cupcakes around the clock. The brand’s products were also available at Disneyland in Anaheim and through various ATMs located on university campuses and in neighborhoods like Little Italy in San Diego.
As news of the closure spread, many customers took to social media to express their sadness and nostalgia. Comments on Nelson’s Instagram post reflected a mix of support and disappointment, with one user stating, “I’m so sorry. Damn PE really does know how to mess up a good thing.”
Nelson’s journey with Sprinkles has been marked by significant milestones, including selling 200 cupcakes in just two hours on its opening day, a feat that helped solidify its place in the dessert landscape. Over the years, the brand has built a legacy of quality and creativity, creating a loyal customer base that embraced its unique flavor combinations and artisanal approach to baking.
As the final day of operations approaches, Nelson plans to share her memories of Sprinkles, celebrating the impact the brand has had on countless lives. “I built this company as a point of joy and connection,” she noted, reminding fans of the sweet legacy that will endure even as the storefronts close.
