Just days before Halloween, online candy retailer CandyWarehouse.com, Inc. has filed for Chapter 11 bankruptcy protection.
The Sugar Land, Texas, company submitted its petition on October 24, listing only about $100,000 to $500,000 in assets against liabilities in the range of $1 million to $10 million.
CandyWarehouse, founded in 1998 and described as a woman-owned, family-operated business, has long served hotels, restaurants, amusement parks and event planners with bulk candy and sweets.
Industry analysts say the retailer’s downfall reflects a broader shift in the candy market, according to TS2. Grocery shoppers are moving toward health-conscious or sugar-free treats, inflationary cost pressures are squeezing margins, and ingredient prices, particularly cocoa and sugar, have surged.
Hershey announced in July that it would raise candy prices by 10 percent to 20 percent due to soaring cocoa costs, though about three-quarters of its products will still be priced at $4 or less. Mondelez International, maker of Oreo and Cadbury, followed suit in February.
At the same time, shifting dietary habits and a growing preference for health-conscious or sugar-free treats have chipped away at traditional candy sales.
In its court documents, CandyWarehouse indicated that the filing is part of a restructuring effort rather than immediate liquidation.
A hearing is scheduled for October 29 to decide whether the company can continue operations, including paying employees and suppliers, while working through the Chapter 11 process.
The case adds to recent stress in the party and candy supply sector. Party City Holdco Inc. filed for Chapter 11 bankruptcy twice, in January 2023 and again in December 2024, closing all of its stores upon the second filing.
