The Cupcake Bakery franchise collapses, but some stores keep baking

Dessert franchise The Cupcake Bakery has collapsed into administration amid news some former store locations are no longer trading under The Cupcake Bakery name.

Administrators Brent Kijurina and Richard Albarran from Hall Chadwick were appointed to the business on March 5, with the first meeting of creditors scheduled for March 17 in Sydney.

The Cupcake Bakery was launched by husband and wife team Alex and Angela Perry in 2006, its website reports.

It says the pair were driven by a “passion for desserts and a drive for business so we left our careers and started selling cupcakes at markets”.

The company built a franchise network through Melbourne, Sydney and Brisbane.

It offers multiple cupcake flavours, sold individually or packaged up for corporate and private events. 

While it was not clear this morning which locations of The Cupcake Bakery are still operating, SmartCompany was told four Cupcake Bakery franchises across Sydney are now trading as a different business.

The stores in Westfield Eastgardens, Liverpool, Ikea and Warringah Mall are now operating as The Cupcake Café.

The Cupcake Bakery is not the first cupcake business to face change, with liquidators appointed to Ghermez Cupcakes in late 2012. Founder Ghazaleh Lyari told SmartCompany at the time the business was not going into administration.

“It was structured as a family trust and I am bringing investors on board so the trust is being liquidated,” she said.

The Cupcake Bakery’s administrators were contacted by SmartCompany but declined to comment further on the state of the business at this stage.