Just days before Halloween, Candy Warehouse, a popular online candy retailer, has filed for Chapter 11 bankruptcy protection. The Texas-based company, which has been in business since 1998, made the filing on October 24, listing assets between $100,000 and $500,000 and liabilities ranging from $1 million to $10 million. The timing is significant, as Halloween is one of the biggest candy-buying seasons of the year.
Candy Warehouse, known for selling over 6,000 types of sweets in bulk, has faced financial difficulties due to rising costs and a decline in sales. The company reported a sales drop of 10 to 20 percent in 2024, with further declines expected in 2025. These challenges have been exacerbated by broader economic issues affecting the candy industry, including tariffs and increased costs for ingredients like cocoa.
Mimi Kwan, President and CEO of Candy Warehouse, told Newsweek, “Filing for Chapter 11 is just a step to help us get back on track—we’re not closing our doors.” She emphasized the company’s commitment to continue operations and thanked loyal customers for their support over the years.
The bankruptcy filing highlights the pressures faced by candy makers nationwide, as consumer preferences shift toward healthier options and economic factors drive up prices. Industry experts note that while Halloween spending remains robust, with Americans expected to spend $13.1 billion this year, rising costs are influencing consumer choices.
Despite these challenges, Candy Warehouse aims to reorganize its finances and continue serving its customer base, which includes hotels, restaurants, and event planners. The company is determined to navigate the competitive landscape dominated by giants like Amazon and Walmart.
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