When crazes happen, smart business owners jump on board and capitalize on the new fad. As the fad slowly begins to fade or the industry changes, the companies that were part of the fad may begin to feel the effects and lose money in their business. New Jersey businesses that suffer heavy losses may find some comfort in filing for Chapter 11 bankruptcy, in an effort to restructure and get back on their feet.
At the height of the cupcake craze, Crumbs Bake Shop Inc. was in its heyday and called a breakout company by Inc. magazine. The company was known for its gigantic 1,090 calorie cupcakes that served six to eight people and cost $42. As the craze came to an end, however, the cupcake giant noticed that restaurants were reducing their cake offerings by 1 percent, compared to three years prior when the need raised by 8 percent.