The retail sector has faced various economic challenges this year that have led to lower revenues for some businesses and financial difficulties.
Retailers have often blamed rising labor and product costs on rising inflation, rising interest rates on their debts, changing consumer preferences for physical retail purchases and the lingering effects of the pandemic.
In some cases, these specific economic problems have not contributed significantly to business distress.
Popular wristwatch and accessories retailer Fossil Global Services Ltd. filed for Chapter 15 bankruptcy on Oct. 20, seeking U.S. recognition of its U.K. restructuring plan as a foreign proceeding after struggling for 10 years to compete with high-tech rivals like Apple and Samsung and direct-to-consumer establishments that have cornered a significant share of the market.
A significant consumer shift toward wearable technology, such as the Apple Watch and Samsung Galaxy Watch, has led to slower-than-expected consumer demand for Fossil products, according to a bankruptcy court filing.
Fossil’s sales fell from $1.7 billion in 2022 to $1.1 billion in 2024, and the company’s net loss increased from $44 million in 2022 to about $106 million in 2024.
The revenue crisis affected the company’s ability to meet its debt obligations, forcing it to seek a restructuring plan to refinance its debt.
And now, national candy distributor CandyWarehouse.com Inc. has filed for Chapter 11 bankruptcy a week before Halloween to reorganize and restructure its debts, facing a significant decline in revenue earlier this year.
The Sugar Land, Texas, debtor filed its petition in the U.S. Bankruptcy Court for the Northern District of Texas on Oct. 24, listing between $100,000 and $1 million in assets and $1 million to $10 million in liabilities, according to Bankruptcy Observer.
Candy Warehouse’s online store generated annual revenue of about $4.5 million in 2024, down 10 to 20 percent from 2023, according to online data firm Grips Intelligence.
The debtor, which generated $203,555 in revenue in August 2025 from 216,677 sessions on the website, experienced a 20% drop in revenue in the period of May, June and July, compared to the previous three months, Grips reported.
The report did not reveal the reason for the drop in revenue.
Candy Warehouse’s annual revenue in 2025 is expected to fall by 20% to 50%, and the trend is expected to accelerate, the data company said. However, the company’s turnover in August was encouraging.
