Sugar crash: US candy retailer CandyWarehouse.com goes bankrupt weeks before Halloween | Business
Major US candy company CandyWarehouse.com, based in Sugar Land, Texas, has filed for Chapter 11 bankruptcy protection just one week before Halloween, the biggest candy selling day of the year. The filing, submitted on 24 October 2025 in the US Bankruptcy Court for the Northern District of Texas, revealed the retailer’s grim financial standing: assets between US$100,000 and US$1 million set against liabilities of US$1 million to US$10 million, confirmation that the company could no longer meet its debts.Founded in 1998, the retailer grew into a major force in the online confectionery business, offering a vast selection of fresh, high quality sweets sold in bulk to both individual shoppers and businesses such as hotels, hospitals and restaurants. But despite decades of steady demand, CandyWarehouse.com has been hit from all sides by financial pressures and fast changing consumer behaviour.
What caused the sugar crash
Online sales have suffered a notable downturn, with the business seeing a 10 to 20 per cent drop in 2024 and projections suggesting an even sharper decline up to 50 per cent in 2025. The market is increasingly favouring healthier choices, low sugar sweets and functional treats, leaving traditional candy retailers fighting for relevance. At the same time, rising shop prices and shrinking pack sizes have made consumers more selective and more cautious with their spending.One of the most significant burdens on the confectionery industry has been soaring cocoa prices. In 2024, global cocoa costs surged by 178 per cent after weather related crop failures in key producing nations like Ghana and the Ivory Coast. Although prices stabilised somewhat in 2025, manufacturers had already committed to purchasing ingredients at far higher levels, leading to sustained cost pressures. Brands including Hershey’s raised retail prices on major products as they struggled to absorb the increases.
A market shifting toward healthier treats
Alongside inflation and commodity volatility, the sweetness of the sector is fading as consumers increasingly favour sugar free and chocolate free alternatives. Newer competitors are capitalising with products marketed as better for dental health or nutritional balance, while traditional candy sellers struggle to reposition themselves for this changing landscape.
What the bankruptcy means for the company
The Chapter 11 filing enables CandyWarehouse.com to continue operations while reorganising its debts under court supervision. The goal is survival rather than closure. However, making such a move, and making it immediately before Halloween, reveals just how dire the situation has become. For an online candy retailer, failing to capitalise on the industry’s most profitable holiday could be an existential blow.
A sign of larger trouble in sweets
CandyWarehouse.com’s collapse reflects deeper shifts in the confectionery industry. Once considered a resilient market driven by nostalgia and seasonal indulgence, the sector now faces powerful headwinds: health driven consumer trends, volatile supply chains and global inflationary pressures. As this bankruptcy story unfolds, the future of the company and others like it may depend on how quickly they can adapt to a world where the traditional sugar rush is losing its appeal.
