Halloween may be the opportune time for sweet treats, but ahead of the spooky holiday, one candy company has announced it’s filed for bankruptcy.

According to The Street, Candy Warehouse, which first opened in 1998 and sells to hotels, hospitals, zoos, restaurants, candy shops and individuals, is pursuing Chapter 11 bankruptcy protection to reorganize its debts following significant revenue declines this year.

Candy Warehouse has seen significant drops in revenue in recent months

The candy distributor filed its petition on Friday in the U.S. Bankruptcy Court for the Northern District of Texas, claiming it has $100,000 to $1 million in assets and $1 million to $10 million in liabilities, Bankruptcy Observer reported.

According to The Street, data from Grips Intelligence found that Candy Warehouse’s online store generated around $4.5 million in annual sales in 2024, down 10% to 20% from the previous year. Revenue has continued to decline in recent months, with the candy distributor seeing a 20% drop from May to July compared to the three preceding months.

However, Grips Intelligence noted in its report that the company’s September revenue appeared promising.

“In September 2025, candywarehouse.com reported revenue of $236,250, significantly outperforming the food and drink industry median of $50,437,” the online data firm stated on its website.

Despite the uptick in sales, Candy Warehouse’s annual revenue is expected to drop by 20% to 50% in 2025.

Hershey’s variety pack, Reese’s Peanut Butter cups and other candy products have seen price increases

Though Candy Warehouse did not provide a reason for its losses, it may be due to changes in consumerism. According to The Sun, Alina Morse, CEO of Zolli Candy, told Snack and Bakery in September that, post-pandemic, consumers are more health-conscious than ever.

“Adults are looking for functional hard candies, with zero sugar, mint, and fruit flavors,” she expressed.

The economy is affecting how people buy candy, too. The candy industry has seen price increases on products like lollipops and chocolate-based treats, while packaging sizes are decreasing. According to Chris Borges, non-chocolate category director for Perfetti Van Melle, owner of the Chupa brand, shoppers aren’t happy about it.

“Consumers have taken a step back. Larger sizes are fading away, and price sensitivity is playing out. You’re seeing manufacturers starting to trim pack sizes,” he told Snack and Bakery.

Chocolate candy has taken a hit as cocoa costs continue to soar, rising by 178% in 2024, CNN reported. Prices are rising for cocoa following poor harvests in Ghana and the Ivory Coast, which together account for 60% of the world’s cocoa, due to climate change. Though cocoa cost prices have started to decline in 2025, many manufacturers bought cocoa at the elevated prices, so they’re keeping prices high.

Chocolate products like Hershey’s variety pack and Reese’s Peanut Butter Cups have seen price increases of 8% and 22% respectively. So have non-chocolate candy items like Sour Patch Kids, which rose by 9.4% in 2024.
The post Candy Warehouse Files For Chapter 11 Bankruptcy Right Before Halloween appeared first on Blavity.



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