Celebrities with a sweet tooth have a bitter taste in their mouths after their favorite bakery became the latest victim of California’s soaring cost of living and inflation rates, suddenly closing its doors just before the New Year. 

Sweet Lady Jane shocked customers on Monday in a statement announcing it has  permanently shut down after more than three decades in the business. 

The iconic cake shop, which first opened its doors on Melrose Ave in 1988 before expanding to six locations across Los Angeles, explained that while sales have been strong, they are not enough to combat rising costs in the state and ‘lease obligations’ that it did not want to ‘pass’ on to its loyal patrons. 

Sweet Lady Jane cake shop shocked customers on Monday in a statement announcing its permanent closure after 35 years

The dessert shop – famed for its Triple Berry Cake – became a beloved fixture across LA, counting Taylor Swift and Gigi Hadid among its celebrity clientele 

Mary-Kate and Ashley Olsen loved the bakery so much they even invested $2million into the business in 2014

The bakery first opened for business on Melrose Ave in 1988 before expanding to several locations across Los Angeles

In a statement posted to Instagram on Monday the bakery said: ‘After 35 years we are closing our doors. Our last day of business was December 31, 2023.

‘We did not come to this decision lightly nor quickly. While the support and loyalty of our customers has been strong, sales are not enough to continue doing business in the state of California, allowing us to service our lease obligations and pay our treasured employees a living wage without passing those costs directly on to you.

‘For more than three decades, we didn’t just build a loyal customer base, we created a real community. 

‘It has been a privilege to be included in your sweetest moments. Big and small. LA’s most beloved Triple Berry Cake will live on in your memories, and in ours.’ 

The dessert shop, founded by Jane Lockhart in 1988, became a beloved fixture across LA, even becoming the top choice for events and weddings for celebrities such as Jennifer Lopez, Taylor Swift, and the Kardashian sisters. 

The bakery was a favorite for twins Mary-Kate and Ashley Olsen, who even invested $2million into the business in 2014.

The dessert shop, founded by Jane Lockhart in 1988, became a beloved fixture across LA, even becoming the top choice for events and weddings for celebrities such as Jennifer Lopez, Taylor Swift, the Kardashian sisters, and many others, over the years 

The interior of Sweet Lady Jane on Melrose Avenue in Los Angeles

Its most popular baked good, the Triple Berry Cake, has been the birthday cake of choice for Hollywood stars, with celebs such as Kourtney Kardashian and more recently, Kurt Russell, seen posing with the dessert on social media over the years. 

Fraser Ross, owner of another iconic Los Angeles business, Kitson stores, told DailyMail.com he’s not surprised at the shuttering of the famous sweet shop.

‘One of the Sweet Lady Jane bakeries is just around the corner from our Robertson location. 

‘Everyone is closing their businesses up around here due to rampant crime, homelessness, greedy landlords and excessive taxation. 

‘The powers that be in our city and state have created a ‘survival of the fittest’ atmosphere. In my over twenty years here in LA I’ve never seen anything like it. What’s next?’

The bakery’s post was quickly flooded with comments by celebrities and loyal customers mourning the loss of the shop.

Employees were informed of the closure on New Year’s Day according to an email obtained by LA TV station KTLA 5.

Kourtney Kardashian opted for Sweet Lady Jane’s famous Triple Berry Cake for her birthday one year 

In July, the bakery shared a belated photo of Kurt Russell celebrating his 72nd birthday with one of its cakes

The email also explained that employees will be paid their regular wages through January 5 and would receive a severance package.

‘We want to tell you that we are very grateful for your loyal service,’ the message added.

Actress Sophia Bush was among those who reacted to the news, writing: ‘This is such a loss for our community. Just … hate this. And just love you and your business so much. ♥️’ 

Many also echoed Ross’s sentiments, blaming state leadership for California’s crippling economy. 

Celebrity esthetician Dionne Phillips wrote: ‘Nooooo! Say it isn’t so! This is devastating! LA, California better do something now before this city becomes ‘The lost City! All because of greed of taxes and up charging fees. I won’t be able to get this berrie cake for so many of our memories! This is soo sad for so many reasons! Ugh! Another city treasured business disappearing in this deteriorating city!’ 

The bakery’s post was quickly flooded with comments by celebrities such as Sophia Bush and loyal customers mourning the loss of the shop

Many also echoed Ross’s sentiments, blaming state leadership for California’s crippling economy

Mark Ghalili, a doctor of regenerative medicine in LA and social media personality, added: ‘The first of many businesses to fall in CA, greedy landlords won’t budge, black rock and vanguard buying every piece of real estate, 25% mandatory tips, payroll tax, Medicare tax, social security tax, la city tax of 2%, credit card processing fees now at 3-3.5%, extra 1% taken from every business of gross sales, three liberal employees annually filing a defamatory lawsuit to obtain money, pay for parking anywhere you want to eat in LA, all add to the failed business model here that governor Newsom is pushing for!’

Others, however, questioned whether there were other motives behind the bakery’s shuttering, with some critics blaming the business for their ‘over expansion’ and not wanting to pay their employees a livable wage. 

‘When you bring up ‘having to pay a living wage’ to your employees as one of the reasons, you are really outing who the real evil, greedy entity is here. 

‘Being mad at having to pay $20 an hour because it stops you from buying another house makes me lean towards ‘good riddance’ on this,’ one user wrote. 

In addition to its main hub in West Hollywood, the bake shop had locations in Encino, Beverly Hills, Manhattan Beach, Santa Monica, and Larchmont Village at the time of its closing.