- CandyWarehouse.com filed Chapter 11 bankruptcy days before Halloween, citing $100k–$500k in assets versus $2.8M–$3.25M in liabilities.
- Industry pressures—soaring cocoa costs, inflation, and shifting consumer tastes—drove steep sales declines and complicate the retailer's restructuring prospects.
SUGAR LAND, Texas — Just as jack-o’-lanterns flicker to life and kids across America plot their trick-or-treat routes, one of the country’s go-to online candy suppliers has hit a wall.
CandyWarehouse.com, the Texas-based bulk sweets powerhouse that’s been dishing out nostalgia in nougat and gummy form since 1998, filed for Chapter 11 bankruptcy protection last Friday, October 24.
The move, lodged in the U.S. Bankruptcy Court for the Northern District of Texas, comes a mere week before Halloween — the single biggest candy-buying bonanza of the year, when U.S. households are projected to drop nearly $4 billion on treats alone.
The FrankNez Media Daily Briefing newsletter provides all the news you need to start your day. Sign up here.
It’s the kind of timing that feels like a plot twist in a bad horror flick.
Founded as a family-run operation by a woman- and minority-owned team, CandyWarehouse.com built its reputation on an eye-popping inventory: over 6,000 varieties of bulk candies, from retro favorites like Necco Wafers to themed hauls for parties and holidays.
They’ve supplied everyone from theme parks and hotels to everyday families stocking up for the neighborhood haunt.
But court papers paint a stark picture of a business squeezed dry: assets pegged between $100,000 and $500,000, stacked against liabilities hovering around $2.8 million to $3.25 million.
That’s a shortfall that left the company unable to cover its debts, despite a loyal base and a warehouse in Carrollton humming with in-house packing pros who’ve stuck around for nearly two decades.
President and CEO Mimi Kwan didn’t mince words when reached by Newsweek. “We’ve been in business since 1998, and CandyWarehouse.com has always been about one thing—sharing joy through candy,” she said.
“Like many small businesses, the pandemic and rising costs hit us hard, and we haven’t fully bounced back yet. Filing for Chapter 11 is just a step to help us get back on track—we’re not closing our doors.”
Kwan emphasized the personal touch that set them apart: “What makes us different from the big guys is that everything we do is in-house—from customer service to carefully packing orders in a climate-controlled warehouse. Some of our team members have been with us for nearly 20 years, and they treat every order like it’s going to a friend.”
Projects Point to a 20% to 50% Plunge
The filing isn’t a full shutdown; Chapter 11 gives CandyWarehouse breathing room to restructure while keeping the lights on — at least for now.
A court hearing on October 29 will hash out whether they can tap cash reserves to pay staff and suppliers during the overhaul. But the shadow it casts over this Halloween is hard to ignore.
August brought in a respectable $203,555 from over 216,000 website visits and 2,030 orders, per e-commerce tracker Grips Intelligence.
Yet that’s after a brutal slide: 2024 sales clocked in at about $4.5 million, down 10% to 20% from the year before. This year?
Projections point to a further plunge of 20% to 50%, with the downturn picking up steam through the summer months, when May-July revenue tanked another 20% from the prior quarter.
Zoom out, and CandyWarehouse’s stumble looks less like a lone misstep and more like a symptom of a confectionery sector staggering under multiple punches.
Soaring cocoa prices — up a whopping 178% in 2024 thanks to climate-ravaged harvests in West Africa, per CNN data — locked in higher costs even as global rates dipped this year.
Manufacturers who bought big during the spike are passing the pain to retailers, who in turn watch shoppers balk at sticker shock.
Add inflation’s relentless grind on sugar, shipping, and labor, and you’ve got a recipe for trouble.
Consumers, meanwhile, are pivoting hard toward “healthier” indulgences: low-sugar chews, functional candies laced with vitamins, or straight-up chocolate skips.
“The market is increasingly favoring healthier choices, low-sugar sweets and functional treats, leaving traditional candy retailers fighting for relevance,” noted a Times of India analysis of the filing.
Bulk buyers like CandyWarehouse, who thrived on impulse hauls of classic sweets, are left scrambling.
The Candy Industry is Changing Big Time
This isn’t an isolated sugar crash, either. The broader food and party goods world is littered with fresh wreckage in 2025.
Party City, the balloon-and-banner behemoth that dabbles in candy tie-ins, filed its second Chapter 11 in as many years this October, blaming “immensely challenging” inflation and macroeconomic headwinds that wiped out even $1 billion in prior debt cuts.
Their stores shuttered for good after the latest round, a grim reminder of how seasonal spikes can’t always outrun rising overhead.
Over in accessories, Fossil Group sought Chapter 15 protection just days before CandyWarehouse’s move, citing similar e-commerce squeezes.
And it’s not just the little guys; even giants like Hershey have sounded alarms, warning of potential 36% to 38% earnings drops in 2025 amid the cocoa crunch, though their stock has held steady around $180.
Yet amid the gloom, Halloween spending is defying the doomsayers — at least on paper.
The National Retail Federation’s latest survey forecasts a record $11.6 billion in total holiday outlays, with candy snagging the lion’s share at $3.9 billion.
Nearly 96% of celebrants plan to stock up on sweets, and 79% expect pricier hauls thanks to tariffs and supply snarls.
“Even with concerns about price increases due to tariffs, Halloween continues to resonate with consumers of all ages,” NRF’s Katherine Cullen said in the report.
“Whether it’s dressing in costume or carving a pumpkin, more consumers plan to take part in Halloween activities and traditions. Retailers are prepared to ensure the shopping experience is a treat for consumers this Halloween season.”
Wells Fargo’s David Branch echoed that resilience to Axios, predicting a split: adults splurging on premium chocolate for the grown-up crowd, while budget belts tighten around basics like gum and hard candies for the kids.
For CandyWarehouse, the immediate Halloween hit could sting. Bulk orders for trick-or-treat stashes might face delays or slimmed-down selections as the company hunkers down.
“Missing or delaying bulk orders ahead of Halloween could impact immediate cash flow,” warned a Meyka industry breakdown. “Retailers who rely on bulk candy might face delays or lower selection.”
Broader ripples? Fewer deep discounts in the online candy space, tighter shelves at dependent vendors, and a nudge toward those emerging low-sugar alternatives.
Competitors like AllCityCandy.com, which edged out CandyWarehouse on average order value despite lower overall revenue, could scoop up the slack — at least until the next headwind blows.
As pumpkins rot and costumes get packed away, CandyWarehouse’s saga underscores a tough truth for the treats trade: indulgence has a shelf life when costs keep climbing and tastes keep shifting.
Kwan’s team is betting on restructuring to sweeten the comeback, but with 200 to 999 creditors circling and a pivotal hearing looming, it’s anyone’s guess if joy through jelly beans can outlast the bottom line.
For now, American doorsteps will still overflow with Snickers and Skittles — just maybe with one less warehouse in the mix.
Also Read: A Massive Convenience Store Now Closes 500 Stores
