The Developers Behind Hudson Yards Now Own Magnolia Bakery

A venture capital firm with ties to Hudson Yards has purchased Magnolia Bakery

Famed cupcake and banana pudding maker Magnolia Bakery has a new owner. RSE Ventures, a venture capital group co-founded by billionaire investor and Hudson Yards developer Stephen Ross, purchased the company for an undisclosed amount as part of a deal that closed earlier this year, the Wall Street Journal reports.

Magnolia has continued to grow during the coronavirus pandemic, most recently opening at Columbus Circle in Manhattan, with another location planned for Moynihan Train Hall at Penn Station in June. Online sales at the bakery chain tripled in 2020, owner Steve Abrams tells the WSJ, but it apparently wasn’t enough to justify the company’s massive, nationwide expansion plans in recent years. Abrams, who took over the Sex and the City famous bakery from co-founder Allysa Torey in 2007, says he decided to sell the company partly due to challenges with raising the necessary capital to continue expanding, according to the WSJ.

RSE, a venture capital firm known for turning New York brands into national ones, could change that. The billionaire-backed firm has previously sunk millions into expanding restaurants like Milk Bar, Momofuku, Bluestone Lane, and &Pizza.

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