US-based confectionery wholesaler CandyWarehouse has entered Chapter 11 bankruptcy proceedings following a period of escalating ingredient costs and weakened market conditions across the sweets industry.
The Texas company, founded in 1998 and operating as a family-run, woman-owned business, filed for protection on 24 October. Court documents list assets of between $100,000 and $500,000 and liabilities of $1 million to $10 million. The filing allows the business to continue operations while restructuring its debts, with a court hearing set for 29 October to decide on continued trading and payroll commitments.
CandyWarehouse’s collapse comes amid a sharp rise in the global cost of key inputs. Cocoa futures have climbed more than 80% since 2023 after poor West African harvests, while sugar prices have jumped due to export limits and lower yields in India and Thailand. Large manufacturers such as Hershey and Mondelez have already implemented price rises to offset costs, while smaller suppliers have struggled to maintain margins.
The confectionery sector faces ongoing challenges as ingredient inflation, changing dietary preferences, and tighter margins reshape buyer behaviour. Businesses in the food and hospitality supply chain are under increasing pressure to absorb cost volatility while responding to demand for healthier and more functional product lines.