MAGA & those tariffs...... the tangerine turd strikes again...... 
According to statements from Candy Warehouse, difficult market conditions since the pandemic—including inflation, increased operating costs, and intense competition from big-box competitors—had a significant impact on the business. Leadership emphasized that the bankruptcy was a strategic move for reorganization rather than liquidation, with efforts focusing on stabilizing operations and continuing fulfillment for customers. The company intentionally delayed filing until after Halloween order commitments were met to minimize disruption for customers, reflecting strong loyalty from its base of independent business partners and customers.
Candy Warehouse's president Mimi Kwan said that entering reorganization during their slower season was a strategic decision to maintain stability for their customers and partners. This approach allowed the business to stay open, continue fulfilling orders, and avoid disrupting a peak sales period, demonstrating a customer-focused operational strategy even in challenging financial circumstances. The company attributes its difficulties to factors like the lingering impact of the pandemic, inflation, and competition from large retailers, but emphasized continued operations and reorganization rather than liquidation.
A national candy distributor has filed for bankruptcy just days before Halloween.
Texas-based Candy Warehouse filed for Chapter 11 bankruptcy on Friday, Oct. 24, in the Northern District of Texas, according to federal court documents obtained by USA TODAY. According to its petition to the U.S. Bankruptcy Court, the company reported higher liabilities than assets, meaning it is insolvent and can no longer pay its debts.
Mimi Kwan, president of Candy Warehouse, told USA TODAY in an emailed statement on Oct. 30 that the decision was made to stabilize the company's operations, restructure certain debts and "ensure we can continue serving our customers and partners long into the future."
It is important to emphasize that this is a reorganization, not a liquidation," Kwan said in the email, noting that Candy Warehouse remains open for business and continues to fulfill orders.
"It’s been a challenge to keep up in today’s market — the pandemic hit us hard, and we haven’t fully recovered due to rising costs and ongoing inflation," Kwan said in the statement. "Competing with big-box companies like Amazon and Walmart is never easy, but we’ve been fortunate to have loyal customers who believe in shopping small and supporting independent businesses. Their encouragement has kept us going."
In addition to offering candy that ships directly to consumers, Candy Warehouse also serves businesses such as hotels and resorts, hospitals and healthcare facilities, zoos and theme parks, as well as candy shops and retailers, among others, according to its website.
As it pertains to Halloween, Kwan said the company intentionally waited until after fulfilling all of its Halloween commitments before filing for bankruptcy so that it "entered this process during our slower season with minimal disruption to our customers."
What led to Candy Warehouse's Chapter 11 filing?
Candy Warehouse filed for Chapter 11 bankruptcy primarily due to sustained financial pressures from rising costs, ongoing inflation, and the challenges of competing against major retailers like Amazon and Walmart. The company reported having higher liabilities than assets, making it insolvent and unable to pay its debts, which prompted the decision to reorganize through bankruptcy while keeping its business operational.According to statements from Candy Warehouse, difficult market conditions since the pandemic—including inflation, increased operating costs, and intense competition from big-box competitors—had a significant impact on the business. Leadership emphasized that the bankruptcy was a strategic move for reorganization rather than liquidation, with efforts focusing on stabilizing operations and continuing fulfillment for customers. The company intentionally delayed filing until after Halloween order commitments were met to minimize disruption for customers, reflecting strong loyalty from its base of independent business partners and customers.
How did Candy Warehouse try to limit customer disruption during bankruptcy?
Candy Warehouse limited customer disruption during its bankruptcy filing by intentionally waiting until after fulfilling all of its Halloween commitments before entering the process. The company filed for Chapter 11 bankruptcy only after the busy Halloween season, ensuring that orders were completed and customers were minimally affected.Candy Warehouse's president Mimi Kwan said that entering reorganization during their slower season was a strategic decision to maintain stability for their customers and partners. This approach allowed the business to stay open, continue fulfilling orders, and avoid disrupting a peak sales period, demonstrating a customer-focused operational strategy even in challenging financial circumstances. The company attributes its difficulties to factors like the lingering impact of the pandemic, inflation, and competition from large retailers, but emphasized continued operations and reorganization rather than liquidation.
A national candy distributor has filed for bankruptcy just days before Halloween.
Texas-based Candy Warehouse filed for Chapter 11 bankruptcy on Friday, Oct. 24, in the Northern District of Texas, according to federal court documents obtained by USA TODAY. According to its petition to the U.S. Bankruptcy Court, the company reported higher liabilities than assets, meaning it is insolvent and can no longer pay its debts.
Mimi Kwan, president of Candy Warehouse, told USA TODAY in an emailed statement on Oct. 30 that the decision was made to stabilize the company's operations, restructure certain debts and "ensure we can continue serving our customers and partners long into the future."
It is important to emphasize that this is a reorganization, not a liquidation," Kwan said in the email, noting that Candy Warehouse remains open for business and continues to fulfill orders.
"It’s been a challenge to keep up in today’s market — the pandemic hit us hard, and we haven’t fully recovered due to rising costs and ongoing inflation," Kwan said in the statement. "Competing with big-box companies like Amazon and Walmart is never easy, but we’ve been fortunate to have loyal customers who believe in shopping small and supporting independent businesses. Their encouragement has kept us going."
What is Candy Warehouse?
According to its website, Candy Warehouse is a small, woman-owned, minority family business that started in 1998 and offers "bulk candy shipped fast." The company's other offerings include party supplies, popcorn, soda and a variety of candies, such as chocolates, chewing gum, cotton candy, and jelly beans, among other options.In addition to offering candy that ships directly to consumers, Candy Warehouse also serves businesses such as hotels and resorts, hospitals and healthcare facilities, zoos and theme parks, as well as candy shops and retailers, among others, according to its website.
As it pertains to Halloween, Kwan said the company intentionally waited until after fulfilling all of its Halloween commitments before filing for bankruptcy so that it "entered this process during our slower season with minimal disruption to our customers."
Popular candy distributor files for bankruptcy days before Halloween
Candy Warehouse, a candy company based in Texas, has filed for bankruptcy just days before Halloween. Here's what we know.
www.usatoday.com
