Century-Old Primrose Candy Company Enters Bankruptcy Proceedings

A nearly century-old Chicago candy maker has filed for bankruptcy, facing rising costs and heavy debt that have put significant pressure on its operations.

Primrose Candy Company, a family-owned manufacturer renowned for its hard candies, chewy treats, and popcorn, filed for Chapter 11 bankruptcy protection on Tuesday in the U.S. Bankruptcy Court for the Northern District of Illinois, as indicated by court documents.

The company is aiming to restructure over $12 million in debt while seeking new financing to cover payroll for its approximately 90 employees, along with other essential operating expenses, as reported by the Chicago Tribune.

RESTAURANT GIANT FILES FOR BANKRUPTCY UNDER MASSIVE DEBT SHORTLY AFTER TOUTING MAJOR EXPANSION

Peppermint candies are pictured in this file photo. (iStock)

Court documents reveal that Primrose reported assets ranging between $1 million and $10 million, while its liabilities are estimated to be between $10 million and $50 million.

“What we have is a lot of old, old debt that we just can’t afford to pay in its entirety,” stated David Welch, an attorney representing Primrose, in an interview with 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 seen a decline, dropping from $11.8 million in 2024 to $7.8 million last year, according to the Chicago Tribune.

FRANCESCA’S ALLEGEDLY FIRES WORKERS WITHOUT WARNING AS WOMEN’S CLOTHING RETAILER SHUTS DOWN FOR GOOD

Popcorn is pictured in this file photo. (iStock)

“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 added.

Founded in 1928, Primrose sells its products in bulk to retailers, who then market them under various brand names.

This bankruptcy filing is part of a broader trend, as many companies in the retail and restaurant sectors are facing similar challenges.

For instance, restaurant franchiser FAT Brands, which owns popular fast-casual chains like Fatburger, Johnny Rockets, and Twin Peaks, recently filed for bankruptcy due to a staggering debt of approximately $1.3 billion.

MAJOR POPEYES FRANCHISEE WITH OVER 130 LOCATIONS FILES FOR BANKRUPTCY

The skyline of Chicago is seen on descent to Midway Airport on Aug. 16, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

In recent weeks, a major Popeyes Louisiana Kitchen franchisee operating over 130 locations has also filed for bankruptcy.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Primrose Candy Company has not yet responded to FOX Business’ request for comment.

FOX Business’ Daniella Genovese and Bonny Chu contributed to this report.

A nearly century-old Chicago candy maker has filed for bankruptcy, facing rising costs and heavy debt that have put significant pressure on its operations.

Primrose Candy Company, a family-owned manufacturer renowned for its hard candies, chewy treats, and popcorn, filed for Chapter 11 bankruptcy protection on Tuesday in the U.S. Bankruptcy Court for the Northern District of Illinois, as indicated by court documents.

The company is aiming to restructure over $12 million in debt while seeking new financing to cover payroll for its approximately 90 employees, along with other essential operating expenses, as reported by the Chicago Tribune.

RESTAURANT GIANT FILES FOR BANKRUPTCY UNDER MASSIVE DEBT SHORTLY AFTER TOUTING MAJOR EXPANSION

Peppermint candies are pictured in this file photo. (iStock)

Court documents reveal that Primrose reported assets ranging between $1 million and $10 million, while its liabilities are estimated to be between $10 million and $50 million.

“What we have is a lot of old, old debt that we just can’t afford to pay in its entirety,” stated David Welch, an attorney representing Primrose, in an interview with 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 seen a decline, dropping from $11.8 million in 2024 to $7.8 million last year, according to the Chicago Tribune.

FRANCESCA’S ALLEGEDLY FIRES WORKERS WITHOUT WARNING AS WOMEN’S CLOTHING RETAILER SHUTS DOWN FOR GOOD

Popcorn is pictured in this file photo. (iStock)

“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 added.

Founded in 1928, Primrose sells its products in bulk to retailers, who then market them under various brand names.

This bankruptcy filing is part of a broader trend, as many companies in the retail and restaurant sectors are facing similar challenges.

For instance, restaurant franchiser FAT Brands, which owns popular fast-casual chains like Fatburger, Johnny Rockets, and Twin Peaks, recently filed for bankruptcy due to a staggering debt of approximately $1.3 billion.

MAJOR POPEYES FRANCHISEE WITH OVER 130 LOCATIONS FILES FOR BANKRUPTCY

The skyline of Chicago is seen on descent to Midway Airport on Aug. 16, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

In recent weeks, a major Popeyes Louisiana Kitchen franchisee operating over 130 locations has also filed for bankruptcy.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Primrose Candy Company has not yet responded to FOX Business’ request for comment.

FOX Business’ Daniella Genovese and Bonny Chu contributed to this report.