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Valley bakery closes unexpectedly after 30 years, leaving customers without refunds

The business posted a sign on its building telling customers there is no money available to provide refunds for outstanding orders.
Valley bakery closes unexpectedly after 30 years, leaving customers without refunds
Baker Wee Bakery
Posted

PHOENIX — A Phoenix-area bakery has permanently closed its doors after three decades in business, leaving customers scrambling to recover money they paid for orders that will never be fulfilled.

Baker Wee Bakery, located on 43rd Avenue and Thunderbird, shut down unexpectedly in late September, catching longtime customers off guard. The business posted a sign on its building telling customers there is no money available to provide refunds for outstanding orders.

Brooke Garza, who has lived in the neighborhood her entire life and been a loyal customer, discovered the closure just three weeks after placing and paying for her wedding cake order in early September.

"My heart dropped. I was so freaked out. I was like, what? I didn't get a call, I didn't get an email," Garza explained.

Now she's scrambling to find another bakery before her wedding in November.

"We have no idea what to do. All these other bakeries, you know, have these rush fees, and not many people can accommodate [them] so quickly. And even if they could, it's still like another $500 to drop. So that's already so unaffordable, and my mom works six days a week; she really had to pinch up pennies to put this money aside. She works really hard, and it was just really, really disheartening, because we were loyal customers to them for a very long time, and we were basically neighbors. So to be left out like this, it's just kind of hurtful," Garza said.

Business cites financial struggles

In a statement to ABC15, the bakery explained the closure was due to a significant downturn in business that began over the summer.

"We are heartbroken to close our doors after 30 years. This bakery has been part of the Phoenix community for a long time, and we are grateful for the notes, emails, and hugs from customers this week. By our conservative estimate, we have helped celebrate more than 60,000 moments over three decades. Weddings. Baby showers. Birthdays. Retirements. Life celebrations. Your support has meant everything to us.

Like many small businesses, and more so in our industry, we see a significant summer slowdown. Most years, the seasonal rebound arrives by mid-September. This year it did not. Our September sales were down significantly from last year, and many wedding orders shifted to small cutting cakes rather than multi-tier designs. Birthday party orders have declined or gone from themed centerpiece designs to simple cupcakes. These changes have lowered the average order size dramatically.

We watched the numbers closely. As risk increased, we paused new advance orders and focused on commitments already on the books. We tried promotions and outreach, but the shortfall deepened and the business became insolvent very quickly.

We know refunds matter. With our accounts exhausted, we are not able to provide refunds. Under the law, remaining assets must go to creditors first. Customer refund claims are generally unsecured and come last in priority. On counsel’s advice, our hands are tied; even if funds were available, we could not lawfully disburse them ahead of other creditor claims. We have been contacting customers with future orders. We regret deeply that not everyone could be reached in time.

This has been devastating for our team of about 20 people, our family, and the community. We are thankful for the kindness so many of you have shown. We are proud of the joy we created together and grateful for every celebration we were trusted to bake for."

Tips for affected customers

If you're a Baker Wee Bakery customer seeking a refund, we recommend taking these steps immediately:

  • File your dispute right away, whether you paid with a debit card, credit card, or service like PayPal, as some have time limits for refund claims
  • Provide ample evidence that the business has closed and you cannot receive your order
  • For future large purchases, consider using credit cards, which typically offer better consumer protection than other payment methods