Everyone has a piece of candy from their childhood that they may not have seen for a few years. Not so much a personal favorite for me, but Coffee Nips remind me of my grandparents’ house as my grandmother always had a stash of them.
This is not a product you see very often on store shelves, but they are still made. When I see them, I usually take a picture and share it on social media or family group text.
“Booms are childhood, the best, brightest moments you wish had lasted forever,” wrote Candy Bar creator Dylan Lauren in his book Dylan’s Candy Bar: Unwrap Your Sweet Life.
Most people associate candy with childhood, and Primrose Candy Company makes a lot of candy that ignites nostalgia. The 98-year-old company may not be as well-known as Hershey’s or M&M Mars, but its hard candies, taffy and flavored popcorn have been sold nationally for decades.
Now, the company has been forced to file for Chapter 11 bankruptcy.
Founded in 1928, Primrose Candy Co. has been in business for nearly a century, producing hard candies, candies and flavored popcorn. It operates a plant in Chicago and has outsourced some business to a plant in China.
Like many smaller US candy makers, it has faced constant pressure from higher domestic sugar costs and competition from lower-cost imports, leading to consolidation or relocation of production.
“Primrose Candy Co., a Chicago-based manufacturer of chocolate-free confectionery products, filed for Chapter 11 protection on January 27, 2026 in the Northern District of Illinois. The company is seeking to restructure its financial obligations while maintaining its manufacturing presence in the Midwest,” according to a post by RK Consulting on X, formerly Twitter.
Chapter 11 Filing for Primrose Candy Co. was confirmed on PacerMonitor and reported by Bondoro, detailing estimated assets between $1 million and $10 million and liabilities between $10 million and $50 million.
“In 2026, the company continues to operate a 130,000-square-foot manufacturing facility in Chicago, although it has recently faced significant headwinds, including the loss of two major contracts for the production of lemon drops worth approximately $1 million annually,” according to the RK Consulting post.
The company blamed these losses on “lower-cost foreign competition.”
“Additionally, the company managed obligations related to a $125,000 Biometric Privacy Agreement with respect to the Illinois Biometric Information Privacy Act (BIPA), which reached a fair hearing in July 2025,” it added.
Primrose has been in business for nearly 100 years.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Primrose has been in business for nearly 100 years.Shutterstock ·Shutterstock
Carmen Ortiz filed a class action lawsuit alleging that Primrose Candy Co. collected the fingerprints of its employees without disclosing and obtaining the written consent required by the Illinois Biometric Information Privacy Act.
The company has denied and continues to deny the allegations. An agreement was reached in the matter.
More bankruptcy:
“Without admitting any fault or liability and in exchange for the release of all claims related to the collection of biometric information, the defendant has agreed to pay up to $125,000 (available to pay members of the settlement panel, to pay an indemnity for services to the plaintiff for serving as a ‘class representative’, to pay attorneys’ fees and attorneys’ fees for the settlement panel and administrative costs,” according to a dedicated website solution.
After deducting expenses, the net amount that each member of the settlement class will receive is estimated to be $803.
Here is a snapshot of Primrose Candy’s financial situation and bankruptcy filing as reported by official sources. The documents highlight how a company beloved for nostalgic candies, including many hard candies, is grappling with financial pressures as it tries to maintain its decades-long legacy.
He filed for Chapter 11 bankruptcy protection in US Bankruptcy Court for Northern District of Illinois on January 27, 2026.
The company is a Manufacturer of hard candy, caramel and popcorn in Chicago with operations dating back to 1928.
Estimated assets: Between 1 million and 10 million dollars
Estimated liabilities: Between $10 million and $50 million
Lenders’ expectations: Submission notes funds available to be distributed to unsecured creditorsindicating that the case is not a no-asset or liquidation-only scenario at this stage.
Advisor: David K. Welch by Burke, Warren, MacKay, and Serritella, PC
Status: This chapter 11 files the company in a court-supervised reorganization process aimed at debt restructuring while allowing for continued operations rather than immediate liquidation. Source: Bondoro
Sugar prices and foreign competition have presented challenges for lesser-known American candy brands. Hershey and M&M Mars face the same problems, but their scale and brand name give them an edge over smaller rivals.
According to data analyzed by the Association of Sweetener Users based on USDA figures, US sugar prices were about 105% higher than global sugar prices in 2023 — meaning US prices were more than double the world price.
“Not only are I competing with unfair trade laws with places like Europe, but now I have to buy ingredients that are sometimes twice as expensive,” said Tess Albanese of Albanese Confectionery Group Inc. for Manufacturing.net.
“Untie my hand behind my back and let me fight a fair fight […] We have to level the playing field so my family can get out there and we can create jobs and win nationally and internationally.”
Sugar prices remain an ongoing issue for the industry.
“We just discovered that it’s better to pay more for sugar and pass it on to the consumer than to go completely sugar-free,” Kirk Vashaw, chief executive of Dum Dums maker Spangler Candy Co., told Cato.org. “And there are a lot of other companies that I think have thought the same thing.”
Sugar prices have forced some American candy makers to relocate their operations.
“These are not isolated examples. In recent decades, numerous companies have made for Mexico and even Canada to obtain this essential ingredient at competitive prices. As the president of one such firm said, ‘I’m tired of paying welfare to Big Sugar,'” Cato.org said.
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This story was originally published by TheStreet on January 28, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
