A well-loved American candy company with 27 years of history, Candy Warehouse, suddenly announced bankruptcy right before Halloween — shocking many locals.
According to The U.S. Sun, the well-known candy company filed for bankruptcy on October 24, just ahead of one of the year’s biggest candy seasons. Bankruptcy documents reveal that Candy Warehouse’s liabilities exceed its assets, leaving the company unable to repay its debts. It has filed under Chapter 11 of the U.S. Bankruptcy Code, seeking to continue operations while restructuring and repaying debts in installments. The company may also sell off assets to raise funds.
Founded in 1998, Candy Warehouse has operated for 27 years, supplying candies to hotels, hospitals, zoos, restaurants, candy shops, and individual consumers — earning a reputation as America’s “candy wholesale paradise.” According to its official website, the company focuses on selling fresh candy and also offers party supplies, toys, snacks, and sodas, allowing customers to purchase everything they need in one place.
However, Candy Warehouse’s struggles reflect broader structural challenges in the confectionery industry. In the post-pandemic era, consumers have become more health-conscious, driving strong demand for sugar-free and low-sugar products. Zolli Candy CEO Alina Morse noted that “more and more adults are seeking functional candies, such as those containing vitamins, sugar-free options, or mint and fruit-flavored hard candies.”
A 2023 survey found that 47% of consumers actively look for ‘healthy candies’ to reduce sugar intake. Meanwhile, rising candy prices have discouraged buyers — with “higher prices and smaller packaging” becoming the new norm, dampening consumer enthusiasm.
Chocolate-based products have been hit especially hard. According to CNN, global cocoa prices surged by 178% in 2024, mainly because Ivory Coast and Ghana, two major cocoa-producing countries, suffered poor harvests due to climate change. Although cocoa prices slightly stabilized in 2025, many manufacturers had already bought ingredients at inflated prices, keeping retail prices high.
