Copyright Mechanicsburg Patriot News
One national candy distributor sure picked the perfect time to file for bankruptcy — literally days before Halloween. Candy Warehouse filed for chapter 11 bankruptcy on Oct. 24 in the Northern District of Texas, just days before the holiday. In its petition to the U.S. Bankruptcy Court, the Texas-based candy company listed $100,000 to $1 million in assets and $1 million to $10 million in liabilities, according to Bankruptcy Observer. Per the U.S. Sun, the company reported higher liabilities than assets in the bankruptcy filing. As a result, Candy Warehouse is insolvent, meaning it can no longer pay its debts. To continue operating, a company can file for Chapter 11 bankruptcy, which would allow it to reorganize its finances while also paying off debts over time, most often by selling its assets. The candy industry is facing tough times, as one issue points to 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.” A 2023 study found that 47% of consumers are looking for “healthy” candy in order to lower their sugar intake. Not to mention the soaring candy costs. Many have even noticed that while prices are rising, the packaging is downsizing.
