City Bakery's 'Painful Truth:' Debt Could Force It To Close

UNION SQUARE, NY — City Bakery shared a "painful truth" with it's followers this week, announcing the company racked up mountains of debt and may be forced to close its famous Manhattan shop, owners announced this week.

Owners of the celebrity bakery took to Instagram Wednesday to announce the City Bakery on West 18th Street near Fifth Avenue would face major changes.

"We may move. We may cater only. We may wholesale only. We may transform and partner with another food company in the city," the owners wrote. "There is also a strong possibility we will close entirely, and soon."

Owners revealed they have been searching for a fix to the company's financial woes for more than a year, but have racked up debt that has become like "quicksand," the Instagram post reads.

"Incredibly, no matter that we are a two-generation NY favorite, normal debt relief from a normal bank has not been an option," owners wrote.

"People believe rent is the ultimate NY retail killer, but worth saying that if a normal bank loan had been available to City Bakery a few years ago, we would not be anywhere near the danger we're in today."

City Bakery has been serving up frothy hot chocolate and buttery croissants near Union Square for nearly 29 years, according to the company website.

The bakery took over the former Vesuvio's storefront in SoHo, renaming it Birdbath Green Bakery, about a decade ago. But City Bakery owner Maury Rubin announced the SoHo location would close after its lease ended in August.

City Bakery did not immediately respond for comment about the future of its Union Square location or details about its financial troubles.