One of the most iconic candy factories in Chicago, with almost 100 years of history, is experiencing a difficult economic situation. We are talking about Primrose Candy Company, a family company that has manufactured candy since 1928. Now, the candy factory has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Illinois.
The candy company wants to solve its debts to be able to continue operating, but it’s true that it has lost millions of dollars and it faces important financial pressure. This case shows that even a candy factory with almost a century of tradition can experience hard times due to higher costs, lower sales, and legal issues. So, let’s learn more about this situation, shall we?
A candy factory with almost 100 years of history
Primrose Candy Company started in 1928 and during decades it has produced non-chocolate sweets such as hard candies, caramels, chewy treats, taffy, and flavored popcorn.
Many customers don’t recognize the company’s name because Primrose sells much of its candy in bulk to retailers and distributors. Those businesses then package the sweets under different brand names, which means that many people have likely eaten Primrose candy without ever seeing the Primrose label.
Throughout these years, the company’s old-fashioned candies were often found in office jars, candy dishes, and small neighborhood stores. But despite its long history, the business is now under financial strain.
Filing for bankruptcy
The candy factory filed for Chapter 11 bankruptcy at the end of January 2026. This type of bankruptcy allows a company to continue operating while reorganizing its debts, instead of immediately closing.
According to legal documents, the company reported assets between $1 million and $10 million and liabilities between $10 million and $50 million. In addition, Primrose is working to reorganize about $12 million in obligations that are directly affecting its cash flow.
One of the main issues behind this situation is declining revenue. In 2024, the company reported approximately $11.8 million in sales. In 2025, that number dropped to about $7.8 million. This sharp decline makes it much harder to pay for:
- Raw materials such as sugar.
- Energy costs.
- Employee wages.
- Interest payments on older loans.
Attorney David Welch, who represents Primrose, told the Chicago Tribune that the company is carrying a significant amount of old debt that it cannot afford to fully repay at this time. The goal of Chapter 11 is to confirm a reorganization plan that addresses these older obligations while allowing the company to continue daily operations.
Lawsuits, loans, and financial pressure
The financial situation is not only related to higher costs or lower sales. The candy factory also faced a legal agreement of $125,000 linked to the Illinois Biometric Information Privacy Act. What happened was that a class action lawsuit accused the company of collecting employees’ fingerprints without prior consent. Although Primrose denied these accusations, it had to pay that money to solve the case.
What’s more, a staffing agency called Labor Solutions is listed as the company’s largest unsecured creditor, with approximately $7.5 million owed for contract labor services. That same amount of money appears in bankruptcy records as a line of credit from lender Pathward. Primrose is asking the court for permission to continue using this financing so it can keep paying employees and suppliers during the restructuring process.
Bankruptcy wave
This situation is not only affecting Primrose, there are also other companies that have filed for protection under Chapter 11. For example:
- FAT Brands, the owner of restaurant chains like Fatburger, Johnny Rockets, and Twin Peaks, also faced bankruptcy with debts between $1.3 and $1.4 billion.
- Sailormen Inc., a major franchisee of Popeyes Louisiana Kitchen, also sought Chapter 11 protection while dealing with around $130 million in obligations.
These cases show that higher costs of food, higher salaries, increased interest rates, and older borrowing are putting pressure on many mid-sized companies.
What this means for workers
For now, the candy factory still operates in Chicago. Primrose aims to secure new financing and keep paychecks flowing to its approximately 90 employees. So, if the court approves the financing and restructuring plan, the candy factory can continue producing sweets while it works to stabilize its finances. However, if the financing request fails, the company could eventually face liquidation instead of reorganization.
So…
If you have ever picked up a wrapped caramel or butterscotch candy at checkout, there is a chance it came from this Chicago facility. We’ll see if this historic candy factory continues into its second century.