Major candy company files Chapter 11 bankruptcy in Halloween week – Shocks Entire World

This year, many retailers have faced tough times. High inflation, rising interest rates, and changing shopping habits have made it difficult for companies to stay profitable. While some businesses blame economic factors for their losses, in other cases, intense competition has played a bigger role. Two companies that have recently filed for bankruptcy are Fossil and Candy Warehouse, but for very different reasons.

Fossil Struggles to Compete with Smartwatch Giants

Fossil Global Services Ltd., once a well-known brand for wristwatches and fashion accessories, has filed for Chapter 15 bankruptcy in the U.S. This move came after the company faced years of declining demand due to tough competition, especially from tech giants like Apple and Samsung.

The shift in consumer interest from traditional watches to smartwatches seriously affected Fossil’s sales. While the company was once doing well, sales dropped from $1.7 billion in 2022 to just $1.1 billion in 2024. At the same time, their net loss more than doubled — from $44 million in 2022 to $106 million in 2024.

With declining revenue and rising losses, Fossil found it hard to pay off its debts. So, the company opted for a restructuring plan and is now seeking U.S. court recognition for its UK-based recovery process.

Key reasons for Fossil’s bankruptcy:

• Intense competition from Apple and Samsung smartwatches
• Changing consumer preferences
• Drop in demand for traditional watches
• Heavy financial losses and debt pressure

Candy Warehouse Files for Bankruptcy Before Halloween

Just a week before Halloween, CandyWarehouse.com Inc., an online bulk candy retailer based in Texas, filed for Chapter 11 bankruptcy. Unlike Fossil, this move was more about reorganizing its debt and business structure.

The company has been hit by a steady decline in revenue throughout 2024. According to Grips Intelligence, Candy Warehouse earned about $4.5 million in 2024 — a 10% to 20% drop from 2023. Things got worse in mid-2025, with a 20% drop in revenue between May and July.

Despite a slight rebound in August 2025 with $203,555 in revenue from 2,030 transactions, experts expect Candy Warehouse’s overall yearly revenue to fall by 20% to 50%.

Candy Warehouse financial highlights:

Candy Warehouse serves a wide range of customers, from hotels and cafes to hospitals and event planners. The company has built its brand around fresh products, not selling any closeout or expired candy. Their inventory includes over 6,000 types of candy — everything from jelly beans and chocolates to Japanese candy, cotton candy, and chewing gum.

Main client base:

• Hotels & Resorts
• Hospitals & Healthcare Centres
• Zoos & Theme Parks
• Restaurants & Cafes
• Candy shops & Retailers
• Event planners
• Private customers

Popular product categories:

• Candy bars, chocolates, hard candy, and lollipops
• Jelly beans, gummy bears, mints, and chewing gum
• Mexican and Japanese candy
• Cotton candy, popcorn, and snacks
• Themed candy for festivals and occasions
• Party supplies and candy toy items
• Sodas and gift products

Despite their strong customer base and wide product range, the revenue drop has made it hard for Candy Warehouse to maintain operations without restructuring.

The retail world is changing fast, and companies like Fossil and Candy Warehouse are facing the pressure head-on. While Fossil suffered due to high-tech competition, Candy Warehouse’s troubles are more financial and market-driven.

These cases show how businesses must adapt quickly to changing trends, shifting consumer demands, and increasing online competition. Whether through smart restructuring or better digital strategies, survival in today’s market takes more than just a good product — it needs adaptability, innovation, and solid financial planning.