Major candy company files Chapter 11 bankruptcy in Halloween week

The retail sector has battled a variety of economic challenges this year that have resulted in a decline in revenues for certain companies and financial distress.

Retailers have often blamed higher costs of labor and products driven by rising inflation, increased interest rates on their debt obligations, changing consumer preferences for brick-and-mortar retail shopping, and lingering effects of the pandemic.

In some cases, those specific economic issues didn't contribute significantly to companies' distress.

Competitive problems led Fossil to file for bankruptcy

Popular wristwatch and accessories retailer Fossil Global Services Ltd. filed for Chapter 15 bankruptcy protection on Oct. 20, seeking U.S. recognition of its UK restructuring plan as a foreign proceeding after struggling for 10 years to compete against high-tech competitors like Apple and Samsung and direct-to-consumer establishments that grabbed a significant share of the market.

A significant consumer shift toward wearable technologies, such as Apple Watch and Samsung Galaxy Watch, led to slower-than-expected consumer demand for Fossil’s products, a bankruptcy court declaration said.

Fossil’s sales plummeted $1.7 billion in 2022 to $1.1 billion in 2024, and the company’s net loss grew from $44 million in 2022 to about $106 million in 2024.

The revenue crunch affected the company's ability to meet its debt obligations, forcing it to seek a restructuring plan to refinance its debt.Candy Warehouse files for Chapter 11 bankruptcy to reorganize and restructure debt.Shutterstock

Candy Warehouse files for bankruptcy before Halloween

And now, national candy distributor CandyWarehouse.com Inc. filed for Chapter 11 bankruptcy protection a week before Halloween to reorganize and restructure its debts, facing a significant drop in its revenue earlier this year.

The Sugar Land, Texas, debtor filed its petition in the U.S. Bankruptcy Court for the Northern District of Texas on Oct. 24, listing $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Bankruptcy Observer.

Revenue declined in 2024

Candy Warehouse's online store generated annual sales of about $4.5 million in 2024, which was down 10% to 20% from 2023, according to online data firm Grips Intelligence.

The debtor, which generated $203,555 in revenue in August 2025 on 216,677 website sessions, had a 20% drop in revenue over the period of May, June, and July, compared to the three preceding months, Grips reported.

The report did not reveal a reason for the decline in revenue.

Candy Warehouse's 2025 annual revenue is expected to drop by 20% to 50%, and the trend is projected to accelerate, the data firm said. The company's August revenue was encouraging, however.

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"In August 2025, Candywarehouse.com stands out among its competitors in terms of revenue, with $203,555 generated from 2,030 transactions and 216,677 sessions. Its average order value (AOV) falls within the range of $100-125," Grips said on its website.

"Compared to Candywarehouse.com, Allcitycandy.com has lower revenue at $108,836, with 853 transactions and 98,422 sessions, but a slightly higher AOV of $125-150," according to Grips.

"Oldtimecandy.com lags significantly behind with only $4,820 in revenue from 46 transactions and 6,464 sessions, while candyfavorites.com outperforms candywarehouse.com with $218,859 in revenue from 3,110 transactions and 118,085 sessions," Grips said.

Related: Popular 49-year-old pizza chain files for Chapter 11 bankruptcy

Founded in 1998, Candy Warehouse is a woman-owned, minority family business that specializes in online bulk candy and snack product sales from its warehouse in Carrollton, Texas.

Candy Warehouse sells candy to several types of businesses, including hotels and resorts, hospitals and healthcare facilities, zoos and theme parks, restaurants and cafes, candy shops and retailers, and event planners. It also sells to private individuals, according to its website.

Candy Warehouse clientele:

Hotels and Resorts Hospitals and Healthcare Facilities Zoos and Theme Parks Restaurants and Cafes Candy shops Retailers Event Planners Private Individuals

The company does not outsource its customer service or warehouse workers, and it guarantees freshness with no closeout products and no stale candy.

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The candy distributor sells almost every type of candy you can imagine, consisting of over 6,000 candies. The company's inventory includes name-brand candy bars, chocolates, hard candy, lollipops, jelly beans, gummy bears, mints, bulk candy, Mexican candy, Japanese candy, cotton candy, and chewing gum.

The debtor also sells themed candy for holidays and special occasions, party supplies, candy toy items, popcorn, snacks, sodas, and gifts.

Candy Warehouse products:

Candy bars Chocolates Hard candy Lollipops Jelly beans Gummy bears Mints Bulk candy, Mexican candy Japanese candy Cotton candy Chewing gum Party supplies Candy toy items Popcorn Snacks Sodas Gifts Themed candy for holidays and special occasions

Related: 41-year-old classic watch company files Chapter 15 bankruptcy

This story was originally reported by TheStreet on Oct 27, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.

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