Major candy company files Chapter 11 bankruptcy in Halloween week

Core Insights - The retail sector is facing significant economic challenges, leading to revenue declines and financial distress for some companies [1] - Specific economic issues are not the sole contributors to the distress experienced by certain companies [2] Company-Specific Summaries Fossil Global Services Ltd. - Fossil filed for Chapter 15 bankruptcy protection on October 20, seeking U.S. recognition of its UK restructuring plan after struggling for a decade against competitors like Apple and Samsung [3] - A shift towards wearable technologies resulted in a decline in consumer demand for Fossil's products, with sales dropping from $1.7 billion in 2022 to $1.1 billion in 2024, and net losses increasing from $44 million in 2022 to approximately $106 million in 2024 [4] - The revenue decline hindered Fossil's ability to meet debt obligations, prompting the need for a restructuring plan [4] Candy Warehouse - Candy Warehouse filed for Chapter 11 bankruptcy protection on October 24 to reorganize and restructure its debts, following a significant revenue drop earlier in the year [5] - The company reported annual sales of about $4.5 million in 2024, reflecting a decline of 10% to 20% from 2023, with a 20% revenue drop noted from May to July compared to the previous three months [7] - Projections indicate that Candy Warehouse's 2025 annual revenue may decline by 20% to 50%, although August revenue showed some positive signs [8]