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."

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.

This article originally appeared on USA TODAY: Popular candy distributor files for bankruptcy days before Halloween

Reporting by Gabe Hauari, USA TODAY / USA TODAY

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