Major Candy Distributor Files for Bankruptcy Days Before Halloween

The company's online store generated approximately $4.5 million in annual sales in 2024, representing a 10 percent to 20 percent drop from 2023, according to an online data firm.
Published: 10/28/2025, 11:37:30 PM EDT
Major Candy Distributor Files for Bankruptcy Days Before Halloween
A person arrives at the U.S. District Bankruptcy Court for the Southern District of New York in Manhattan, on Jan. 9, 2020. (Brendan McDermid/Reuters)

Just a week before trick-or-treaters hit the streets, a national candy distributor filed for bankruptcy protection, citing mounting debts and a sharp revenue decline throughout 2025.

CandyWarehouse.com Inc., based in Sugar Land, Texas, filed for Chapter 11 bankruptcy protection Oct. 24 in the U.S. Bankruptcy Court for the Northern District of Texas, according to Bankruptcy Observer, an online bankruptcy monitoring site. The filing aims to reorganize the company's debt as it faces major financial headwinds.

The bankruptcy petition listed assets ranging from $100,000 to $1 million and liabilities between $1 million and $10 million. The company reported having between one and 49 creditors.

The timing couldn't be worse for the candy company. Founded in 1998 as a woman-owned, minority family business, Candy Warehouse built its reputation on fresh bulk candy and personalized customer service from its warehouse in Carrollton, Texas, according to the company’s about us page.
But recent financial data paints a troubling picture. The company's online store generated approximately $4.5 million in annual sales in 2024, representing a 10 percent to 20 percent drop from 2023, according to online data firm Grips Intelligence.

The downturn accelerated in 2025. Between May, June, and July, Candy Warehouse saw a 20 percent revenue decline compared to the preceding three months. The firm's projections suggest the company's 2025 annual revenue could plummet by 20 percent to 50 percent, with the negative trend expected to accelerate.

August brought a glimmer of hope. "In August 2025, Candywarehouse.com stands out among its competitors in terms of revenue, with $203,555 generated from 2,030 transactions and 216,677 sessions," Grips Intelligence said on its website. "Its average order value falls within the range of $100-125."

Sweet Sales Showdown

The data firm compared Candy Warehouse's performance to competitors. Allcitycandy.com generated lower revenue at $108,836 with 853 transactions and 98,422 sessions, but posted a slightly higher average order value of $125 to $150.

Oldtimecandy.com trailed behind, with only $4,820 in revenue from 46 transactions and 6,464 sessions, while candystore.com saw $57,233 in revenue from 374 transactions. Meanwhile, candyfavorites.com outperformed Candy Warehouse with $218,859 in revenue from 3,110 transactions and 118,085 sessions.

Candy Warehouse has built a diverse customer base spanning hotels and resorts, hospitals and healthcare facilities, zoos and theme parks, restaurants and cafes, candy shops, retailers, event planners, and private individuals, according to its website.

The company distinguishes itself by refusing to outsource customer service or warehouse workers, guaranteeing freshness with no closeout products and no stale candy. The business says it maintains an inventory of more than 6,000 candies, including name-brand candy bars, chocolates, hard candy, lollipops, jelly beans, gummy bears, mints, bulk candy, Mexican candy, Japanese candy, cotton candy, and chewing gum.

The company also sells themed candy for holidays and special occasions, party supplies, candy toy items, popcorn, snacks, sodas, and gifts.