A nearly century-old Chicago candy maker has filed for bankruptcy as rising costs and heavy debt pressure its business.
Primrose Candy Company – a family-owned manufacturer known for its hard candies, chewy treats and popcorn – filed for Chapter 11 bankruptcy protection Tuesday in the U.S. Bankruptcy Court for the Northern District of Illinois, according to court documents.
The company is seeking to restructure more than $12 million in debt and obtain new financing to cover payroll for its roughly 90 workers, as well as other operating expenses, the Chicago Tribune reported.
RESTAURANT GIANT FILES FOR BANKRUPTCY UNDER MASSIVE DEBT SHORTLY AFTER TOUTING MAJOR EXPANSION
Court documents show Primrose reported assets of between $1 million and $10 million, while liabilities were estimated to range from $10 million to $50 million.
“What we have is a lot of old, old debt that we just can’t afford to pay in its entirety,” David Welch, an attorney representing Primrose, told the Chicago Tribune. “Our hope is to confirm a plan of reorganization down the road, months down the road, that enables us to address that old debt, but not have the old debt be part of our cash flow requirements on a current basis.”
The company’s revenue has also fallen, dropping to $7.8 million last year from $11.8 million in 2024, according to the Chicago Tribune.
FRANCESCA’S ALLEGEDLY FIRES WORKERS WITHOUT WARNING AS WOMEN’S CLOTHING RETAILER SHUTS DOWN FOR GOOD
“The cost of making that same piece of candy is so much more than what it used to be, and you can’t keep up with your pricing to absorb all those costs when you have a lot of old debt that you also have to service,” Welch said.
Founded in 1928, Primrose sells its products in bulk to retailers, which then market them under different brand names.
The filing follows a wave of bankruptcies across the retail and restaurant industries.
Restaurant franchiser FAT Brands, which owns popular fast-casual chains including Fatburger, Johnny Rockets and Twin Peaks, recently filed for bankruptcy amid a mounting debt of roughly $1.3 billion.
MAJOR POPEYES FRANCHISEE WITH OVER 130 LOCATIONS FILES FOR BANKRUPTCY
A major Popeyes Louisiana Kitchen franchisee operating more than 130 locations has also filed for bankruptcy in recent weeks.
Primrose Candy Company did not immediately respond to FOX Business’ request for comment.
FOX Business’ Daniella Genovese and Bonny Chu contributed to this report.
Read the full article here
