Some owners of Gigi's Cupcakes file for bankruptcy only two years after acquiring new owners

Posted at 9:35 AM, Jan 10, 2019
and last updated 2019-01-10 11:33:53-05

NASHVILLE, Tenn. (WTVF) — After purchasing Gigi's Cupcakes in 2016, FundCorp is filing for Chapter 11 bankruptcy.

Gigi Butler, the founder of and previous spokesperson for Gigi's Cupcake, has released the following statement regarding the financial state of the franchise:

"Gigi’s Cupcakes was founded in 2008 by Gigi Butler, and sold to FundCorp in 2016. Butler remained the spokesperson for Gigi’s Cupcakes until November 2018. Butler continues to own and operate her original store in Nashville, Tennessee as a franchisee, and will always proudly be the Founder of Gigi’s Cupcakes."

In a statement we received from FundCorp they said the following about the filing: "Due to issues that were existing when we acquired the brand that we have not been able to resolve...[it] is not a result of the health of the brand’s operations."

The statement went on to say, "Customers will not see any changes in service or the quality of our products. In addition, this filing will have no impact on our level of support we provide to each of our franchisees. The company will continue to pay suppliers, vendors and employees."