- - Rumors Swirl as Sprinkles' Founder Announces the Bakery Chain's Abrupt Closure

Sabrina WeissJanuary 1, 2026 at 3:17 AM

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Chris Urso/Tampa Bay Times via ZUMA Wire/Shutterstock; Stefanie Keenan/Getty

Sprinkles Cupcake ATM; A view of cupcakes at the Sprinkles Baking Book by Candace Nelson: Pre-Release Party on October 18, 2016 in Beverly Hills, California. -

Candace Nelson, the founder of Sprinkles, announced the trendy bakery chain's abrupt closure

Nelson's announcement on Dec. 31 comes just two days after Sprinkles posted about New Year's Eve orders

The company has not made a statement on the closure but alleged employees wrote that they got "one day notice" about the chain's closure

Sprinkles, the celebrity-favorite nationwide bakery chain, is closing. Candace Nelson founded Sprinkles in 2005 in Beverly Hills before it blossomed into several nationwide stores with its unique ATM-style cupcake machines. On Wednesday, Dec. 31, the pastry chef announced that the once-viral brand would be shuttering immediately.

“A few days ago I found out that Sprinkles Cupcakes, the company I started in 2005 and then sold to private equity in 2012, will be closing its bakery doors today,” Nelson said in an Instagram post, describing the news as “surreal.”

Smith Collection/Gado/Getty

Close-up of a cupcake ATM at Sprinkles cupcakes.

“Even though I sold the company over a decade ago, I still have such a personal connection to it and this isn’t how I thought the story would go. I thought Sprinkles would keep growing and be around forever. I thought it was going to be my legacy,” she continued, referencing the sale of the chain to a private equity firm in 2012. She specified in the post’s caption that she has “no ownership or operational involvement in the company.”

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Nelson concluded the video by saying that she was grateful for the joy “that our cupcakes brought to millions of people over the years.”

Celebrities shared their sadness on Nelson’s post, including Mean Girls’ Lacey Chabert, writing, “This is such sad news as I have loved Sprinkles cupcakes since you opened! I’d wait in line for that strawberry cupcake and was obsessed with the cupcake ATM. You created something so special and it will be missed! 💕” Nicky Hilton also commented, “First Fred Segal, now this- losing one of the greats. 💔”

Sprinkles did not immediately respond to PEOPLE’s request to comment.

The news left fans confused, with many pointing out in Nelson’s comment section that neither Sprinkles’ website nor social media accounts say anything about the closure.

Gado/Getty

Sign for Sprinkles cupcakes store in San Ramon, California, February 12, 2022.

Sprinkles’ last Instagram post, shared on Monday, Dec. 29 and about special New Year’s Eve-themed cupcakes available, is flooded with comments from alleged employees. “Cupcakes are sweet. One-day layoff notices are not. Yikes, what a bold way to celebrate 20 years and ring in the new year 😴😴😴!” one person wrote and another echoed a similar sentiment, “thanks for the one day notice of unemployment and no severance!”

There are Sprinkles bakeries and cupcake-dispensing ATMs located in Arizona, California, Washington, D.C., Florida, Nevada, Texas and Utah, per Sprinkles’ website.

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Source: “AOL Entertainment”