Candy retailer files for Chapter 11 bankruptcy right before Halloween 2025

Candy Warehouse, Inc., a Texas-based company, has filed for Chapter 11 bankruptcy protection. This happened just before one of the busiest times for candy makers. The company submitted its filing to the U.S. Bankruptcy Court for the Northern District of Texas on October 24. This move comes as the company faces growing financial difficulties and sees its sales continue to decline.

Court papers show that the Sugar Land–based candy distributor has assets between $100,000 and $500,000. Its debts range from $1 million to $10 million. The filing listed about $224,000 in assets and around $2.8 million in total debts.

CandyWarehouse files for bankruptcy right before Halloween - pic.twitter.com/4DYOLycl9e

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Candy Warehouse faces declining sales and financial struggles amid rising costs

Candy Warehouse started in 1998. It established a reputation as an online candy seller, offering a wide selection of sweets to both individuals and businesses. However, like many small shops, the company has struggled to recover from the financial difficulties caused by COVID-19. It's also dealing with higher costs to make and ship its products.

"We’ve been in business since 1998, and CandyWarehouse.com has always been about one thing—sharing joy through candy," President and CEO Mimi Kwan told Newsweek. "Like many small businesses, the pandemic and rising costs hit us hard, and we haven’t fully bounced back yet."

Kwan emphasized that the bankruptcy does not signal the end of operations.

"Filing for Chapter 11 is just a step to help us get back on track—we’re not closing our doors," she said.

Numbers from the online shopping analysis company Grips Intelligence indicate that CandyWarehouse.com's internet sales decreased by 10-20 percent to approximately $4.5 million in 2024. The business is likely to experience a further decline in sales of 20 to 50 percent in 2025.

Rising cocoa prices and inflation drive up Halloween candy costs

The filing occurs as candy makers contend with broader market issues related to raw material costs, such as cocoa reaching new highs. Market watchers say that how people spend money for Halloween 2025 might show these price effects.

A poll by the National Retail Federation (NRF) found that 80 percent of buyers expect prices to increase this Halloween, while more people are shopping at discount stores, with the number rising to 42 percent from 37 percent last year. Additionally, a study by the money services company Empower revealed that 57 percent of Americans are reconsidering their chocolate purchases this year due to price hikes.

A study by the Groundwork Collaborative, using NielsenIQ data, shows that Halloween candy prices have increased by 10.8 percent since 2024—almost four times the overall inflation rate. This price hike stems from ongoing supply issues in cocoa-growing areas and new taxes on imports from West Africa.

Candy Warehouse plans to keep running through the holiday season as it files for Chapter 11 bankruptcy protection. The company will stay online while it tries to get its business back on track.