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By Hugh Cameron
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A Texas-based candy company has filed for bankruptcy just days before Halloween, a peak season that is crucial for confectioners across America.
On Friday, CandyWarehouse.com, Inc. filed for Chapter 11 protection with the bankruptcy court for the Northern District of Texas, following a reported decline in sales.
"We’ve been in business since 1998, and CandyWarehouse.com has always been about one thing—sharing joy through candy," President and CEO Mimi Kwan told Newsweek. "Like many small businesses, the pandemic and rising costs hit us hard, and we haven’t fully bounced back yet."
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"Filing for Chapter 11 is just a step to help us get back on track—we’re not closing our doors," she added.
Why It Matters
The bankruptcy filing comes amid concerns that the financial challenges facing Americans this year could impact their Halloween and holiday season spending. While surveys show continued enthusiasm for Halloween shopping, the rising costs of chocolate in particular are already causing some to reconsider the amount they will spend on candy this year.
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What To Know
In the petition filed on October 24, the Sugar Land-based debtor listed between $100,000 and $500,000 in assets and between $1 million to $ 10 million in liabilities. Court documents show CandyWarehouse.com estimated its assets at around $224,000 and its liabilities at roughly $2.8 million.
As well as relative debt levels, the filing also comes at the end of a long-term decline in the candy distributor’s sales. According to the e-commerce data analytics platform Grips Intelligence, the company’s online store sales dropped between 10 and 20 percent to $4.5 million last year, with another expected decline of 20 to 50 percent for 2025.
While some have forecast a robust Halloween shopping season in 2025, including for candy, many companies have been spooked by surveys showing weaker consumer confidence and a potential pullback in spending.
A poll by the National Retail Federation (NRF) found that nearly eight in ten (80 percent) anticipate higher prices this Halloween as a direct result of tariffs. Meanwhile, the number picking discount stores as their go-to shopping destination has risen to 42 percent from 37 percent last year.
A mid-September survey by the financial services firm Empower found that 57 percent of Americans are reconsidering how much chocolate to purchase this Halloween as a result of rising prices.
An analysis of NielsenIQ data by the left-leaning think tank Groundwork Collaborative has found that candy will be 10.8 percent more expensive this Halloween season compared to 2024, a price increase that is nearly four times the overall rate of inflation. The nonprofit attributed this to new duties on cocoa-producing nations compounding yearslong supply issues caused by poor harvests in West Africa.
What People Are Saying
CandyWarehouse.com President and CEO Mimi Kwan told Newsweek: "What makes us different from the big guys is that everything we do is in-house—from customer service to carefully packing orders in a climate-controlled warehouse. Some of our team members have been with us for nearly 20 years, and they treat every order like it’s going to a friend. We’re just a small company still trying to compete with giants like Amazon, Target, and Walmart—a little fish in a very big sea. But I want to take this opportunity to thank all of our loyal customers over the years. They know who they are, and we wouldn’t be here without them."
NRF Vice President of Industry and Consumer Insights Katherine Cullen, in the NRF report, said: “Even with concerns about price increases due to tariffs, Halloween continues to resonate with consumers of all ages. Whether it’s dressing in costume or carving a pumpkin, more consumers plan to take part in Halloween activities and traditions. Retailers are prepared to ensure the shopping experience is a treat for consumers this Halloween season.”
Rebecca Rickert, head of communications and consumer insights at Empower, wrote in September: "Some consumers may be ghosting chocolate this Halloween as prices creep higher. Trick-or-treat spending offers a peek into how pricing pressures are shifting budgets and filtering into the smallest traditions."
What Happens Next
According to the NRF’s forecasts, Americans are expected to spend a record $13.1 billion on Halloween purchases this year, including $4.3 billion on costumes, $4.2 billion on decorations and $3.9 billion on candy.
Update 10/28/25 12:46 a.m. ET: This article was updated with comment from Mimi Kwan.
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