Halloween Nightmare: This Major Candy Company Just Filed For Bankruptcy

Halloween is supposed to bring a little spookiness to your day, but large companies filing for bankruptcy and one beloved See's Candy location closing its doors in the last year probably isn't the type of scare you were looking forward to this season. As if there weren't enough reasons to wonder if a recession is coming, major candy distributor Candy Warehouse just announced it's filing for Chapter 11 bankruptcy a mere week before Halloween, one of the biggest candy-buying holidays of the year.

On October 24, 2025, the Sugar Land, Texas, online candy retailer voluntarily filed for Chapter 11 bankruptcy in the Northern District of Texas bankruptcy court, according to Bankruptcy Observer. The specialty food company listed assets of between $100,001 and $1 million against its liabilities that total between $1 million and $10 million. There are between one and 49 creditors the company owes, and it's yet to be determined how or when these investors may receive compensation. This bankruptcy has the potential to cause financial strain for the unknown creditors, who could also face repercussions from this recent filing.

Candy Warehouse, a woman- and minority-owned family business, supplies confections to large box stores, hotels, theme parks, restaurants, individuals, and more. In business since 1998, the company is likely struggling due to several economic factors. Cocoa prices, for instance, have surged in recent years, per a report by the Wells Fargo Agri-Food Institute, causing the market as a whole to slow. On top of higher chocolate prices, inflation has caused prices to increase and product sizes to shrink, making many consumers rethink what and where they buy. Some companies have also scaled down production of some offerings to help offset the rising costs of ingredients. 

Grips, an e-commerce intelligence platform, reports that Candy Warehouse's sales were down 10% to 20% in 2024, and its sales are expected to drop even further in 2025. In fact, Grips estimates the company's sales to plummet another 20% to 50% by the end of 2025 — and inflation may not be the only reason. People are frequently opting for healthier candy and snack options as they become more conscious of their sugar intake. With candy costing more to make and purchase and fewer people buying it, it's no surprise that a company like Candy Warehouse that sells to such a wide array of customers would feel the effects.

A hearing to expedite proceedings with the Candy Warehouse bankruptcy case is currently scheduled for October 29, 2025. For now, the company hopes to continue operations without having to liquidate. According to court documents, while the candy company is currently unable to pay creditors, it hopes to restructure its debt so it can remain in business. The hearing could allow business to continue as the company negotiates for its future.

Having to file Chapter 11 bankruptcy right before Halloween doesn't bode well for Candy Warehouse, though. Typically, the holidays are a boon for candy sales, and this blow certainly doesn't look good to potential future investors. Even enormous corporations in the sector are dealing with financial issues: Hershey's share prices have dropped considerably in recent weeks, and Mondelez's have also trended downward steadily since July of this year. Even so, some companies have come roaring back from bankruptcy in the past, so we'll have to wait and see if Candy Warehouse can do the same.