“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,” said Candace Nelson, who started the company after she lost her job in 2005. The closure was announced Dec. 30.

Nelson started Sprinkles Cupcakes in her own kitchen, and the first location was in a small Beverly Hills storefront that had previously been a sandwich shop. The brand would go on to ascend to national fame, and fans took to social media following the company’s announcement to lament the closure.

The company’s cupcake-dispensing machines in malls and airports briefly went viral on TikTok for the not-so-subtle “I love Sprinkles” jingle that played repeatedly while a mechanical arm delivered the dessert.

The company no longer has any products for sale on its website, which also has removed all operational locations across the country.

Nelson sold her business to private equity firm KarpReilly LLC in 2012 after the company had expanded to 10 locations across the country. The firm owns dozens of other companies for products including a health food home delivery service, kombucha and protein wellness shakes.

KarpReilly did not respond to an emailed request for comment Friday evening. Neither the firm nor Nelson provided a reason for the cupcake company’s closure.

Private equity has dramatically expanded its influence in restaurants over the last decade, investing $94.5 billion between 2014 and 2024, according to data from capital market company PitchBook.

Some outraged Sprinkles Cupcakes fans said on social media that the closures were part of a larger trend where private equity firms purchase restaurants and retail brands — like Red Lobster or TGI Fridays — that later file for bankruptcy or close altogether.

Morgan’s law firm is running an ad incorporating an adaptation of the nearly century-old “Steamboat Willie” Disney cartoon, but it didn’t happen without some high-profile legal drama.

In a podcast interview, Morgan, 69, said his firm’s headline-generating lawsuit against Disney succeeded, and he was given a green light to proceed with the commercial based off the groundbreaking animated short.

“After a few months, Disney agreed that I could run this commercial,” Morgan told the PBD podcast last month.

The 1928 “Steamboat Willie” animated short, featuring the official debut of Mickey and Minnie Mouse, entered the public domain in 2024, but Disney still holds trademark rights as well as copyright protections for later, more modern versions of the characters.

Morgan & Morgan filed a federal lawsuit in September, seeking a ruling that the ad wouldn’t violate Disney’s intellectual property rights. The firm previously tried to get confirmation from Disney that it wouldn’t object, but the company’s lawyers declined to provide legal advice on the commercial, according to the suit.

Morgan & Morgan dropped the suit in November, but court documents didn’t explain why.

Morgan offered his explanation on a business podcast hosted by Patrick Bet-David.

“I won,” Morgan told Bet-David.

Pressed on whether he won or settled, Morgan responded, “It’s running.”

Morgan & Morgan’s 37-second, black-and-white ad shows a Minnie Mouse-type character calling the law firm after Mickey Mouse crashes a boat into her car. It includes a disclaimer that the ad was not approved, authorized or endorsed by Disney.

Morgan & Morgan hasn’t revealed how often the ad has run so far, when it will run in the future or on which platforms. It appeared during the Dec. 6 televised college football matchup between Indiana University and Ohio State University.

Disney vowed in a company statement to continue to defend its intellectual property rights, but it hasn’t discussed the specifics of the case.

“Disney remains committed to guarding against unlawful copyright and trademark infringement to avoid consumer confusion caused by unauthorized uses of Mickey Mouse and our other iconic characters,” the statement read.

Disney declined Friday to comment on Morgan’s remarks about the suit.

In the podcast interview, Morgan mentioned his brother, Tim Morgan, who suffered a severe spinal cord injury in 1977 while working as a lifeguard at Walt Disney World.

Morgan has cited his brother’s injury and Disney’s refusal to settle the case as the inspiration behind his personal injury firm, now widely recognized as the largest in the country. That also prompted him to pursue using the Disney cartoon in his ad.

“I came back,” Morgan said, recalling his frustration with Disney at the time. “I didn’t forget. I am like Trump — retribution.”

NEW YORK (AP) — U.S. stocks eked out small gains on Wall Street Friday in a wobbly day of trading to kick off the new year.

Markets were mostly quiet on the first trading day of 2026, with the influential technology sector driving much of the up-and-down action. The mostly minor moves also cap off a tepid and holiday-shortened week. Markets were closed on Thursday for New Year’s day.

The S&P 500 rose 12.97 points, or 0.2%, to 6,858.47. The benchmark index is coming off a gain of more than 16% in 2025.

The Dow Jones Industrial Average rose 319.10 points, or 0.7%, to 48,382.39.

The Nasdaq composite fell 6.36 points, or less than 0.1%, to 23,235.63. The index was weighed down by losses for Microsoft and Tesla.

Foreign markets fared better and benchmarks in Britain and South Korea hit records.

Technology stocks steered the market, especially companies with a focus on artificial intelligence, continuing the trend that pushed the broader market to records in 2025.

Nvidia jumped 1.3% and was the biggest force trying to push the market higher. But a 2.2% fall for Microsoft helped to check those gains.

Tesla also weighed on markets with a 2.6% drop after after reporting falling sales for a second year in a row.

Nvidia, Microsoft and Tesla are among the most valuable companies in the world and their outsized valuations give them more influence on the stock market’s direction. That includes sometimes pushing the market up and down from hour to hour.

Technology companies have been a major focus because of advancements in artificial intelligence technology and the potential for growth within the sector. Wall Street has been betting that demand for computer chips and other items needed for data centers will help justify the big investments from technology companies and their pricey stock values.

Furniture companies gained ground following President Donald Trump’s move to delay increased tariffs on upholstered furniture. RH rose 8% and Wayfair rose 6.1%.

E-commerce giant Alibaba climbed 4.3% and Baidu, maker of the Ernie chatbot, jumped 9.4% in Hong Kong after it said it plans to spin off its AI computer chip unit Kunlunxin, which would list shares in Hong Kong early in 2027. The plan is subject to regulatory approvals.

Crude oil prices were mostly stable. Prices for U.S. crude oil fell 0.2% to $57.32 per barrel. The price of Brent crude, the international standard, fell 0.2% to $60.75 per barrel.

The price of gold fell 0.3%.

Treasury yields held steady in the bond market. The yield on the 10-year Treasury rose to 4.19% from 4.17% late Wednesday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, held at 3.48% from late Wednesday.

Wall Street will move past the mostly quiet holiday season starting Monday. The first full week of the new year will include several closely watched economic updates. They will also be some of the last big updates the Fed sees before its next meeting at the end of January.

Next week will feature private reports on the status of the services sector, which is the largest part of the U.S. economy, along with consumer sentiment. Government reports on the job market will also be released. The hope is they’ll help paint a clearer picture of how various parts of the U.S. economy closed out 2025 and where it might be headed in 2026.

The Fed has had a more difficult task because of the complex shifts within the economy. It cut interest rates three times toward the end of 2025, partly to help counter a weakening jobs market. But inflation remains above its target rate of 2% and cutting interest rates could add more fuel to rising prices. Consumers have already expressed more caution amid the squeeze from stubborn inflation and the U.S. trade war with much of the world has added more uncertainty.

The Fed has already signaled concern and caution. Wall Street is betting that the central bank will hold its benchmark interest rate steady at its January meeting.

AP Business Writer Elaine Kurtenbach contributed to this report.

529 education savings plans are powerful tools to help pay for the mounting costs of an education. Yet some people hesitate to use them.

One common concern is oversaving. You can only use 529 funds can only cover qualified education expenses without incurring a tax penalty, but it can be hard to pinpoint how much money you actually need.

Many parents open 529s for their children at birth, when there’s no way to know whether their kids will earn a scholarship or go to college at all. Fortunately, parents with multiple children can change the beneficiary of a 529 plan.

But what do you do if you still have money left over after covering education expenses?

Thanks to Secure 2.0 Act, you can now roll over unused 529 fund to a Roth IRA. But the 529 rollover isn’t a loophole to save extra for retirement; rules limit the conversions.

Here’s what you should consider when converting 529 funds to a Roth IRA.

What are the rules for converting a 529 plan to a Roth IRA?

The Roth IRA receiving the funds must be in the name of the 529 plan beneficiary.

The 529 plan must be open for at least 15 years.

You cannot convert 529 contributions made within the past five years (or the earnings on those contributions).

The 529 funds you roll over count toward your IRA annual contribution limit.

You can move a maximum of $35,000 from a 529 plan to a Roth IRA during your lifetime.

529 funds must be converted by paying the amount directly to a Roth IRA—you can’t pay yourself and then deposit the money into the Roth IRA later.

You can contribute to a Roth IRA only if you have earnings from a job, so the 529 beneficiary must have eligible earnings when the 529-to-IRA conversions occur.

Roth IRA income limits do not apply to 529 rollovers.

While avoiding the Roth IRA income limits is a retirement-saving perk for those with higher income, the remaining rules around rolling over excess 529 funds are designed to ensure that people use 529 plans for education as intended. The annual contribution limits and the lifetime cap on conversions mean that you can’t double up on your retirement funding.

So, what’s the bottom line?

The ability to convert unused 529 funds to a Roth IRA can ease potential concerns about oversaving for education. Still, don’t count on your 529 as a means to save for retirement. Instead, consider funding your Roth IRA separately.

529 rollovers into ABLE accounts

Families with a child with disabilities can roll their 529 account over into an ABLE account, a tax-favored way to save for the needs of a person with a disability while maintaining eligibility for government assistance. It uses the same legal framework as 529 plans, and it works similarly. Contributions are made with aftertax dollars to a plan with a set menu of investment choices. Earnings compound tax-free, and withdrawals to pay for qualified expenses are tax-free, too.

You can transfer funds from a 529 plan to an ABLE account, up to the ABLE annual contribution limit of $19,000, without incurring tax penalties. The ABLE account must have the same designated beneficiary as the 529.

ABLE account eligibility is limited to individuals with significant disabilities, the onset of which occurred before they turned 46. ABLE accounts have a broader set of qualified expenses including education, housing, health care, employment training and support, and legal fees.

Individuals’ needs and circumstances change throughout their lifetimes, often in ways we can’t anticipate. The ABLE account rollover provides families with additional flexibility if a 529 account beneficiary is diagnosed with a disability or becomes disabled because of accident or injury.

This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar.com/personal-finance.

Margaret Giles is a senior editor of content development for Morningstar.

NEW YORK (AP) — Tesla lost its crown as the world’s bestselling electric vehicle maker on Friday as a customer revolt over Elon Musk’s right-wing politics, expiring U.S. tax breaks for buyers and stiff overseas competition pushed sales down for a second year in a row.

Tesla said that it delivered 1.64 million vehicles in 2025, down 9% from a year earlier.

Chinese rival BYD, which sold 2.26 million vehicles last year, is now the biggest EV maker.

It’s a stunning reversal for a car company whose rise once seemed unstoppable as it overtook traditional automakers with far more resources and helped make Musk the world’s richest man. The sales drop came despite President Donald Trump’s marketing effort early last year when he called a press conference to praise Musk as a “patriot” in front of Teslas lined up on the White House driveway, then announced he would be buying one, bucking presidential precedent to not endorse private company products.

For the fourth quarter, Tesla sales totaled 418,227, falling short of even the much reduced 440,000 target that analysts recently polled by FactSet had expected. Sales were hit hard by the expiration of a $7,500 tax credit for electric vehicle purchases that was phased out by the Trump administration at the end of September.

Tesla stock fell 2.6% to $438.07 on Friday.

Even with multiple issues buffeting the company, investors are betting that Tesla CEO Musk can deliver on his ambitions to make Tesla a leader in robotaxi services and get consumers to embrace humanoid robots that can perform basic tasks in homes and offices. Reflecting that optimism, the stock finished 2025 with a gain of approximately 11%.

The latest quarter was the first with sales of stripped-down versions of the Model Y and Model 3 that Musk unveiled in early October as part of an effort to revive sales. The new Model Y costs just under $40,000 while customers can buy the cheaper Model 3 for under $37,000. Those versions are expected to help Tesla compete with Chinese models in Europe and Asia.

For fourth-quarter earnings coming out in late January, analysts are expecting the company to post a 3% drop in sales and a nearly 40% drop in earnings per share, according to FactSet. Analysts expect the downward trend in sales and profits to eventually reverse itself as 2026 rolls along.

Musk said earlier last year that a “major rebound” in sales was underway, but investors were unruffled when that didn’t pan out, choosing instead to focus on Musk’s pivot to different parts of business. He has been saying the future of the company lies with its driverless robotaxis service, its energy storage business and building robots for the home and factory — and much less with car sales.

Tesla started rolling out its robotaxi service in Austin in June, first with safety monitors in the cars to take over in case of trouble, then testing without them. The company hopes to roll out the service in several cities this year.

To do that successfully, it needs to take on rival Waymo, which has been operating autonomous taxis for years and has far more customers. It also will also have to contend with regulatory challenges. The company is under several federal safety investigations and other probes. In California, Tesla is at risk of temporarily losing its license to sell cars in the state after a judge there ruled it had misled customers about their safety.

“Regulatory is going to be a big issue,” said Wedbush Securities analyst Dan Ives, a well-known bull on the stock. “We’re dealing with people’s lives.”

Still, Ives said he expects Tesla’s autonomous offerings will soon overcome any setbacks.

Musk has said he hopes software updates to his cars will enable hundreds of thousands of Tesla vehicles to operate autonomously with zero human intervention by the end of this year. The company is also planning to begin production of its AI-powered Cybercab with no steering wheel or pedals in 2026.

To keep Musk focused on the company, Tesla’s directors awarded Musk a potentially enormous new pay package that shareholders backed at the annual meeting in November.

Musk scored another huge windfall two weeks ago when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018.

Musk could become the world’s first trillionaire later this year when he sells shares of his rocket company SpaceX to the public for the first time in what analysts expect would be a blockbuster initial public offering.

AP video journalist Mustakim Hasnath contributed to this report from London.

A “Holiday Sip and Shine,” featuring kids’ games, a DJ and drink specials, took over the cafe.

Concessions International, a Black-owned business, operates this Starbucks, and wanted local people to connect with the coffeehouse team in an informal way. Residents of Overtown, the historically Black community just blocks away, got to see a business that represents them.

As one of the largest coffee brands in the world, Starbucks might not be associated with Black family business. But Concessions International is changing that perception in South Florida.

Read the full story at MiamiHerald.com

Sure, expensive hobbies may bring joy. But does it make sense to splurge on something like golf, sailing or world travel? What if that splurge takes money away from other more “responsible” goals, such as saving or paying off debt?

Responses were mixed: Some encouraged the poster to spend now on what makes them happy. After all, you never know what the future might bring. Those folks shared stories of spending on luxury cars, video gaming accessories and musical instruments.

Others recommended a more balanced approach, suggesting a responsible split between spending on future savings and today’s hobbies.

It turns out financial experts think it’s OK to indulge — in a balanced way, of course.

Take care of your essentials

Before splurging on non-essentials, do a review of your basic needs, suggests Andi Wrenn, an accredited financial counselor and founder of Coaching Capability in the Raleigh, North Carolina area.

Are you covering the important stuff and still feeling good about your financial situation?

It’s a good idea to make sure your bills are paid and you’re saving for the future before turning to hobby-related spending, Wrenn says.

Reflect on bigger goals

What’s your master plan? Thinking about your goals and values is a useful way to decide how to prioritize your discretionary funds, says John Jones, a certified financial planner and investment advisor representative at Heritage Financial in Newberry, Florida.

If you have a partner, it’s useful to talk together about where you want to be in five, 10 and 15 years, he adds.

“How do you want to spend your time? How do you want to spend your financial assets? Is it on golfing, boating or sailing? One might appeal more to one person than the other,” Jones says.

Build hobby spending into your budget

Once you’ve set your financial priorities, you can make room for your expensive hobby in your overall budget, Jones says.

“I like to think through what is sustainable,” he says.

A sustainable expense is one you can pay for with your current cash flow instead of turning to savings or loans.

There might be ways to cut back in other areas to make room for the extra expense. “Maybe we save $10,000 a year for this hobby,” Jones suggests.

Wrenn takes that approach in pursuit of her passions, which include travel and crafting.

“For me, it was important to have money in the budget to do the things that I enjoy doing,” she says, which means scaling back spending in other categories to compensate.

Find creative ways to fund your hobby

To fund her travel passion, Wrenn strategically uses credit cards. She pays them off each month to earn travel rewards. Done right, she can purchase airplane tickets with points instead of savings.

She recently took her family on a trip to Scotland, which was paid for largely by those travel rewards. “I could afford it because I planned for it,” she says.

Another option is to brainstorm ways to make your hobby pay for itself. If you’re a crafter, you can try to sell some of your creations on Etsy. If you love to sail, maybe you can offer charters to paying clients, Jones suggests.

Embrace patience and planning

Sometimes, a big hobby-related purchase requires extra planning, Wrenn says.

For example, she spends big on craft supplies, but only stocks up during her favorite store’s annual sale.

“For me, going to the craft store and spending $300 makes me happy, so I save for that,” she says.

In her case, savvy planning pays off. She used the stamps, ink and paper — all bought on sale — to make her annual holiday, thank-you and greeting cards.

Another tip: Create a separate savings account for the hobby and deposit money into it each month, says Wrenn. That can make it easier to accrue funds for a passion while avoiding debt.

This method also helps head off any potential fights with your partner about how the money is spent. “If the spending is pre-planned, you don’t need to fight about it,” she says.

Taking that approach allowed her to purchase a large sewing machine and a computer to assist with crafting projects.

“Having a dedicated savings account that I just put money into every month makes it very purposeful and allows me to save without being tempted to spend on something else,” Wrenn says.

Expensive hobby. Justified.

Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like spending and saving, so we sifted through Reddit forums to get a pulse check. People post anonymously, so we cannot confirm their individual experiences or circumstances.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article Asked on Reddit: Can I Justify an Expensive Hobby? originally appeared on NerdWallet.

While the specifics of each situation vary, the core issues tend to remain the same. Whether it is about managing relationships, tackling financial hurdles, or making decisions about the future, the underlying threads are often preparation, communication, and perspective.

If there’s one piece of advice I repeat time and again, it’s this: Take a step back and think before you act. In moments of stress or uncertainty, it’s easy to let emotions take the wheel.

But whether dealing with a family disagreement, a career decision, or a financial setback, the best outcomes usually come from a calm, informed approach. Gather the facts. Ask for help if you need it.

And remember, reacting impulsively often creates more problems than it solves.

One area where this advice is especially true is in personal relationships. Misunderstandings and conflicts often arise not because people are inherently at odds, but because expectations are not clearly communicated.

Whether with a relative, a friend, or a neighbor, taking the time to listen, clarify, and approach the situation with empathy can make all the difference. It is not about avoiding conflict altogether, which is impossible, but about handling it in a way that strengthens, rather than weakens, the connection.

Even when this does not solve the problem, it invariably puts you in a better position.

Another recurring theme I noticed is the challenge of managing change. Transitions can feel overwhelming. The key is to focus on what you can control and approach the process methodically.

Big changes rarely go perfectly according to plan, but with preparation and flexibility, they can be managed. This is another area where research and knowing when to ask for help can make a huge difference.

People often struggle with financial decisions, such as whether to rent or own. Thinking long-term and avoiding the excitement will lead to a successful outcome.

It is tempting to focus on immediate gratification or short-term fixes, but the best financial choices prioritize stability and future goals. Take the time to understand your options, weigh the risks, and make decisions that align with your values and priorities.

I often remind people that not every problem requires a drastic solution. Sometimes the best course is to pause, reassess, and take small, deliberate steps.

The path to resolution is rarely a straight line, but with patience, persistence, a willingness to learn, and deliberate action, people can navigate even the toughest situations.

Finally, because sometimes life’s problems can leave you standing in a lawyer’s lobby, make sure that when problems do occur, you take detailed notes and lots of pictures. There have been many times in my practice when what might have seemed like an insignificant detail provided by my client has turned a tough case into a favorable resolution.

Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/askpro. 

OMAHA, Neb. (AP) — The advice that legendary investor Warren Buffett offered on investing and life over the years helped earn him legions of followers who eagerly read his annual letters and filled an arena in Omaha every year to listen to him at Berkshire Hathaway’s annual meetings.

Buffett’s last day as CEO is Wednesday after six decades of building up the Berkshire conglomerate. He’ll remain chairman, but Greg Abel will take over leadership.

Here’s a collection of some of Buffett’s most famous quotes from over the years:

___

“Be fearful when others are greedy, and greedy when others are fearful.”

That’s how Buffett summed up his investing approach of buying out-of-favor stocks and companies when they were selling for less than he estimated they were worth.

He also urged investors to stick with industries they understand that fall within their “circle of competence” and offered this classic maxim: “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”

“After they first obey all rules, I then want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper to be read by their spouses, children and friends with the reporting done by an informed and critical reporter.

“If they follow this test, they need not fear my other message to them: Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless.”

That’s the ethical standard Buffett explained to a Congressional committee in 1991 that he would apply as he cleaned up the Wall Street investment firm Salomon Brothers. He has reiterated the newspaper test many times since over the years.

“You only find out who is swimming naked when the tide goes out.”

Many companies might do well when times are good and the economy is growing, but Buffett told investors that a crisis always reveals whether businesses are making sound decisions.

“Who you associate with is just enormously important. Don’t expect that you’ll make every decision right on that. But you are going to have your life progress in the general direction of the people you work with, that you admire, that become your friends.”

Buffett always told young people that they should try to hang out with people who they feel are better than them because that will help improve their lives. He said that’s especially true when choosing a spouse, which might be the most important decision in life.

“Our unwavering conclusion: never bet against America.”

Buffett has always remained steadfast in his belief in the American capitalist system. He wrote in 2021 that “there has been no incubator for unleashing human potential like America. Despite some severe interruptions, our country’s economic progress has been breathtaking.”

A customer watches as a “cupcake associate” serves Sprinkles Cupcakes in Beverly Hills in 2006. Twenty years after the cupcake chain was launched, it closed all shops abruptly on New Year’s Eve 2025. (File photo: H. Lorren Au Jr. / The Orange County Register)

Sprinkles Cupcakes, founded in 2005 in Beverly Hills, abruptly moved to close all of its locations on New Year’s Eve 2025. The cupcake chain launched by Candace Nelson touted luxuriously made sweets. She sold the chain to a private equity firm in 2013 for undisclosed terms. (File photo: H. Lorren Au Jr. / The Orange County Register)

LAS VEGAS, NV – MARCH 21: Founder and pastry chef of Sprinkles Cupcakes Candace Nelson poses at the grand opening of Sprinkles Cupcakes at The LINQ on March 21, 2014 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

NEW YORK, NY – MARCH 25: A woman takes her order of cupcakes after using a “Cupcake ATM” created by Sprinkles bakery on March 25, 2014 in New York City. The Cupcake ATM opened today, and while there were certain technical difficulties for the first day, lines of people waited to try out the new machine. (Photo by Andrew Burton/Getty Images)

CULVER CITY, CA – APRIL 24: Sprinkles Cupcakes are seen during Safe Kids Day 2016 presented by Nationwide at Smashbox Studios on April 24, 2016 in Los Angeles, California. (Photo by Jonathan Leibson/Getty Images for Safe Kids Worldwide)

Sprinkles Cupcakes, a chain of scratch-made gourmet cupcakes, cookies and cakes that got its start in Beverly Hills and was later bought by a private equity giant, is closing all stores on Wednesday, Dec. 31.

“A few days ago, I learned that Sprinkles Cupcakes, the company I started in 2005, and then sold to private equity in 2012, will be closing its bakery doors today,” founder Candace Nelson — an investment banker turned baker — said Wednesday in an Instagram video post.

Nelson opened the first Sprinkles in 2005 in Beverly Hills.

The chain, which was bought by investment firm KarpReilly LLC, operated 21 stores and 25 ATMs that dispensed fresh cupcakes 24 hours a day, seven days a week, in California, Florida, Nevada, Texas, Utah and Washington, D.C.

Spokespersons with Sprinkles Cupcakes and Greenwich, Connecticut-based KarpReilly were not immediately available for comment. However, an employee at Sprinkles’ Scottsdale store said that orders were no longer being accepted.

“After careful and thoughtful consideration, we’ve made the difficult decision to transition away from an operating company owned by Sprinkles Bakeries,” the worker read from a statement. “As a result, our company owned locations will be closing, with the final day of service scheduled for today.”

The worker, who declined to provide their name, would not comment further.

On opening day 20 years ago, Nelson sold 200 cupcakes in two hours, attracting celebrity devotees including Tyra Banks and Barbra Streisand. Nelson’s concept pioneered an explosion of specialty dessert and haute cupcake shops in Southern California.

The news of the chain’s closure hit the founder hard.

“Just to say that out loud is completely surreal. 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,” Nelson said. “I thought it was a going to be my legacy. It’s hard to describe how I’m feeling right now. But one thing is for sure, I’m incredibly grateful for all of the joy our cupcakes brought to millions of people over the years.”

KarpReilly has a portfolio of 44 companies listed on its website and invests in small to mid-size consumer growth companies. Some of those businesses include Newport Beach-based California Fish Grill, San Diego-based Burger Lounge and downtown-Los Angeles-based women’s clothing brand Christy Dawn. Sprinkle Cupcakes was no longer listed as a current investment.

In 2007, the private equity firm acquired a majority position of Irvine-based Habit Burger Grill before taking it public in 2014, later selling in 2020 to Yum! Brands, the parent of KFC, Pizza Hut and Taco Bell.

KarpReilly manages funds and affiliates with capital commitments in excess of $800 million.

“I have so many amazing Sprinkles memories, which I plan to share over the next few weeks as I process this news,” Nelson said. “I built this company as a point of joy and connection.”

Over the years, Sprinkles was sold out of a cupcake truck and its proprietary mixes from more than 250 Williams-Sonoma stores throughout the United States and Canada. In 2012, the company debuted its cupcake ATM, dubbed as the world’s first such device.

Sprinkles also sold its bakery goods at Disneyland in Anaheim and through ATMs, such as those on the campus of the USC and the Little Italy neighborhood in San Diego. In Southern California, Sprinkles had stores in Beverly Hills, downtown Los Angeles, Irvine, La Jolla, Manhattan Beach, Newport Beach and The Grove shopping complex in the Beverly Grove area of Los Angeles.

The cupcakes were made fresh in small batches throughout the day and contained no preservatives, trans fats or artificial flavors, according to the company.

As of Wednesday morning, Nelson’s announcement on Instagram had received more than 360 comments on her post and nearly 2,100 likes.

“I’m so sorry. Damn PE (private equity) really does know how to f… up a good thing,” wrote one commenter under the handle of codiesanchez.

“Wow! Candace!!! That must be very tough. I’m happy you sold the company when you did, but truly sorry the new team was not able to grow and thrive with your strong foundation: Truly the end of an important chapter for you,” wrote another poster, faith_wheeler7.  “May one door close so another may open.”

Another poster, tayywalkerr of San Diego, wrote that she was speechless over the news. “This is so hard to hear. These cupcakes were my obsession for years. Still my favorite cupcake ever. You built something so amazing & always brought joy to anyone I bought cupcakes for.”