Financial Trouble Could Force Union Square's City Bakery to Close Up Shop - NBC New York

Financial Trouble Could Force Union Square's City Bakery to Close Up Shop

The bakery opened nearly three decades ago in Union Square

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    NEWSLETTERS

    Financial Troubles Could Close City Bakery

    A decades-old Manhattan bakery may soon close its oven doors for the last time.

    (Published Saturday, Oct. 12, 2019)

    What to Know

    • City Bakery may soon close its oven doors for the last time

    • The bakery said financial troubles may force the shop to move out of Union Square

    • The owners said they hope to keep it open by moving locations or going online

    A decades-old Manhattan bakery may soon close its doors amid financial woes, its owners say. 

    City Bakery, known for its delicious pastries and hot chocolate topped with homemade marshmallows, revealed the shop is in financial trouble.

    The bakery took to Instagram this past week admitting its failed spin off, Birdbath Neighborhood Green Bakery, left the flagship store in debt. The post says despite City Bakery's popularity, it has "never been far enough away from being vulnerable."

    “There is also a strong possibility we will close entirely, and soon," the post says. 

    City Bakery opened in 1990 at 18th Street and 5th Aveneue in Union Square.

    The owners said they hope to keep it open by moving locations or going online.

    “Suffice to say for now: we won’t be staying in our current location. We may move. We may cater only. We may wholesale only. We may transform and partner with another food company in the city," the post says.

     
     
     
     
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    PART ONE [1/2] Time has come to share a painful truth: City Bakery is about to go through major changes. There's a long version and a short version. Suffice to say for now: we won't be staying in our current location. We may move. We may cater only. We may wholesale only. We may transform and partner with another food company in the city. There is also a strong possibility we will close entirely, and soon. I know people who have been into the bakery recently will be shocked. At the moment, we are busy, busy like we've been since our early days. Union Square has filled in with a zillion food options, and still we are busy. We're busy at breakfast, and lines at lunch. Tables are filled with friends catching up, writers writing, job interviews, pitch meetings, first dates, moms with strollers and tourists - lots of tourists - getting their first taste of City Bakery Hot Chocolate or a Pretzel Croissant. The food business is not what it seems, just ask anyone on the inside with enough experience to know. Standing in the center of City Bakery at lunchtime, watching New Yorkers and the fabulous energy of the room, it's hard to imagine anything other than great riches. The greater truth is that City Bakery, an established NYC food destination, is still a small company and has never been far enough away from being vulnerable. Years ago we began a second bakery concept, Birdbath Green Bakery. A little sister to City Bakery. Birdbath was embraced and grew from Tribeca to Soho to the UWS, but then we had some misses, and the cost was high. We unwound Birdbath to focus on City Bakery. We've sought new partners and financial support that hasn’t been found. We've believed our profitable track record, range of new opportunities and value in the community would be part of a solution. Not so ...

    A post shared by City Bakery (@citybakerydaily) on

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