Halloween hits Candy Warehouse, the candy company that files for Chapter 11 bankruptcy protection

Halloween is just around the corner and hordes of kids will flock to houses hoping to fill up their sacks and buckets with an assortment of their favorite sweet treats. While that should mean profitable times for companies in the business of selling sugary goodies, not all is well for the industry.

Candy Warehouse, a Texas-based bulk candy retailer, filed for Chapter 11 bankruptcy protection on 24 October so that it can reorganize and restructure its debts. The company listed in its filing that it has $1 million to $10 million in liabilities but only $100,000 to $1 million in assets according to Bankruptcy Observer.

Candy crush: a ghastly turn of events for Candy Warehouse

Candy Warehouse saw sales of $4.5 million in 2024 according to Grips Intelligence, but that was a 10% to 20% decline from the year before. The e-commerce market research platform forecast that revenue would be down another 20% to 50% at the family-owned sweet treats retailer this year with the trend accelerating.

Candy industry dealing with headwinds

Even though consumers are spending more this year on treats, the candy industry, like others, has faced several challenges over the past few years in the wake of the pandemic. Just like other grocery store items, shoppers have been upset with shrinkflation or straight-up inflation in candy products.

While cocoa prices have retreated slightly in 2025, worldwide the cost rose by nearly 180% the prior year reports CNN. Since many producers bought when prices were high, those costs are still being passed on to consumers. That could mean less chocolate treats being handed out Halloween night this year.

The candy industry is also dealing with changing habits and preferences of consumers. 72% of those surveyed by the International Food Information Council in 2023 said that they are trying to avoid or reduce their sugar intake reported Confectionary News. Among the 87% of Americans who regularly purchase candy, nearly half say that they intentionally try to find “healthy” candy alternatives.

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