A candy company based in Texas has filed for bankruptcy, just days before Halloween, a peak season for the confectionery industry.
Candy Warehouse filed for Chapter 11 bankruptcy on Friday in the Northern District of Texas, citing a decline in sales.
Founded in 1998, Candy Warehouse is a woman-owned, minority family business that specializes in online bulk candy and snack product sales from its warehouse in Carrollton, Texas, according to its website.
The company caters to a variety of businesses and individuals, including hotels and resorts, hospitals, zoos, theme parks and restaurants.
In the candy company’s petition, it listed between $100,000 and $500,000 in assets and between $1 million to $10 million in liabilities. Candy Warehouse estimated its assets at approximately $224,000 and its liabilities at about $2.8 million.
According to the data analytics platform Grips Intelligence, Candy Warehouse’s online store sales amounted to $4.5 million in 2024, a 10% to 20% drop from 2023. For 2025, revenue is expected to decline anywhere from 20% to 50% and the trend is expected to accelerate.
The candy industry is changing to reflect new consumer spending habits and shoppers opting for more health-conscious treats.
“Consumers are looking for across the board, post-pandemic, ways to get in vitamins or other supplementary dietary needs,” Alina Morse, CEO of Zolli Candy, told Snack and Bakery. “Adults are looking for functional hard candies, with zero sugar, mint, and fruit flavors.”
According to a 2023 study from Shopkick, a leading shopping rewards app that surveyed over 7,000 Americans about their candy preferences, 47% of consumers revealed they are seeking out “healthy” candy options to lower their sugar intake.
Price increases have also left a bad taste in customers’ mouths as packaging sizes have shrunk.
“The price pressures that we’ve seen over the past couple of years are catching up to the category,” Chris Borges, non-chocolate category director for Perfetti Van Melle, owner of the Chupa brand, told Snack and Bakery. “Consumers have taken a step back. Larger sizes are fading away, and price sensitivity is playing out. You’re seeing manufacturers starting to trim pack sizes.”
Cocoa prices have also nearly doubled in comparison to early 2024, Axios reported.
“The adults are going to be spending more to give chocolate, but I think you’re also going to see a lot more gum, suckers and other hard candy,” Wells Fargo Sector Manager David Branch told Axios.
National Retail Federation Vice President of Industry and Consumer Insights Katherine Cullen said in a recent report that “Even with concerns about price increases due to tariffs, Halloween continues to resonate with consumers of all ages. 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.”
Halloween spending is expected to reach a record $13.1 billion this year, the NRF study shows. This figure is up from $11.6 billion last year and exceeds the previous $12.2 billion record set in 2023.
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