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Major Candy Company Files for Chapter 11 Bankruptcy During Halloween Week

CandyWarehouse.com, Inc., a well-known Texas-based online retailer specializing in sweets and candies since 1998, has filed for Chapter 11 bankruptcy protection. The filing was made on October 24, 2025, in the U.S. Bankruptcy Court for the Northern District of Texas, with assets estimated between $100,001 and $500,000 and liabilities ranging from $1 million to $10 million. The company, owned by women and operated by a family, serves both individual consumers and business clients, including hotels, resorts, hospitals, theme parks, and retail stores. The bankruptcy allows CandyWarehouse to continue operating while restructuring its debts and business operations, with a court hearing scheduled for October 29, 2025, to approve key expenses. The company’s goal is to preserve its brand and customer base amid financial difficulties. This bankruptcy coincides with a challenging period for the candy industry, which faces rising ingredient costs—particularly cocoa, which increased by 178% in 2024 due to poor harvests in Ghana and Ivory Coast—and changing consumer preferences toward healthier and smaller-packaged treats. The broader retail and food sectors are also experiencing financial struggles, with other companies filing for bankruptcy or closing stores. The candy industry’s price hikes are driven by increased costs of cocoa and other ingredients, leading to higher prices for consumers, including popular brands like Hershey’s and Reese’s. Overall, CandyWarehouse’s bankruptcy highlights ongoing economic pressures affecting retail and confectionery businesses during a competitive holiday season.

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