Halloween candy sold at Target stores in New York City is noticeably more expensive this year. (Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images)
With perhaps the biggest day of the year to buy wrapped gummies and chocolates quickly approaching, a Texas candy company has filed for bankruptcy.
Candy Warehouse, an online bulk candy store which markets itself as a small family business that’s been around since 1998, filed for Chapter 11 bankruptcy in the Northern District of Texas last week, just ahead of Halloween this Friday.
The Carrollton-based company owes about $3.25 million in debts, the bankruptcy filing notes.
With the bankruptcy arriving even in a time of high demand for candy and as candy companies would expect to see booming business (retail sales of Halloween chocolate and candy totaled $7.4 billion in 2024), the sweet treat business isn’t immune to economic pressures.
Some candy makers have noted that tariffs are affecting their products, and high cocoa prices are notably also being passed on to consumers. Hershey, one of the brands Candy Warehouse carries (alongside names including Haribo, Starburst, Sour Patch and Jolly Rancher), has reportedly discussed how it will change its “price pack architecture.” In other words, consumers can expect to see shrinkflation when last-minute shopping for candy this Halloween.
Meanwhile, the legal proceedings could also come as a boost to Candy Warehouse. Chapter 11 is a type of case often referred to as a “reorganization.” In these scenarios, a debtor can use the time from their bankruptcy filing to the confirmation of their debt repayment plan to reorganize their finances, the Internal Revenue Service says.
Candy Warehouse did not respond to a request for comment. But the company isn’t relying just on individual customers with a sweet tooth; in addition to sales directly to consumers, the company also sells bulk candy to hotels, restaurants, retailers and more.
The company still appears to be in the Halloween spirit and has boasted offerings ahead of the holiday, such as a 57-ounce bag of Mars chocolate favorites and a 145-piece tub of Laffy Taffy.
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This article originally published at Texas candy company files for bankruptcy right before Halloween.