The chain, which went public in 2011, will be delisted and forced to pay lenders.
The company is closing all its stores, which may be around 58.
The Nasdaq has suspended Crumbs Bake Shop's shares as of July 1, citing the company's failure to meet a requirement of having either at least $2.5 million in shareholder equity or meeting annual net profit or market cap benchmarks.
The suspension has also led to a default on debt at the company: $9.3 million in the form of tranche notes and $5.1 million on the unsecured debt.
So the company, which went public three years ago, is closing all of its stores, the Wall Street Journal reported. It now has 58 stores.