A nearly century-old family-owned candy manufacturer has been crushed under the weight of skyrocketing production costs and crippling debt—a stark reminder of how runaway inflation from years of fiscal recklessness continues to destroy American businesses.
Story Snapshot
- Primrose Candy Company, founded in 1928, filed Chapter 11 bankruptcy on January 27, 2026, with liabilities up to $50 million
- Revenue plummeted from $11.8 million in 2024 to $7.8 million in 2025 as production costs outpaced pricing power
- The Chicago-based manufacturer employs approximately 90 workers whose jobs now hang in the balance
- Bankruptcy hearings scheduled for February 3, 2026, will determine if the company can secure financing to continue operations
Legacy Business Collapses Under Economic Pressure
Primrose Candy Company filed voluntary Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Illinois.
Company president Jeff Puch signed the petition, revealing assets estimated between $1 million and $10 million against crushing liabilities ranging from $10 million to $50 million.
The family-owned business, which has produced hard candies, chewy treats, caramel, and coated popcorn for nearly a century, now faces an uncertain future as it attempts to restructure over $12 million in debt while maintaining operations for its workforce.
A nearly century-old Chicago candy maker has filed for bankruptcy as rising costs and heavy debt pressure its business. https://t.co/3ssh0lSCQA
— KTVU (@KTVU) February 1, 2026
Rising Costs Devour Profit Margins
The company’s attorney, David K. Welch of Burke, Warren, Mackay & Serritella, told the Chicago Tribune that Primrose cannot afford to service its legacy debt amid unprecedented increases in production costs.
Welch stated bluntly that “the cost of making that same piece of candy is so much more” than before, highlighting how inflation has eroded the manufacturer’s ability to compete.
Revenue collapsed by nearly 34% in a single year, dropping from $11.8 million in 2024 to $7.8 million in 2025, as the company struggled to pass along soaring input costs to retail partners.
Another Casualty in Biden’s Economic Wreckage
Primrose’s bankruptcy filing represents yet another victim of the inflationary spiral unleashed by years of reckless government spending and misguided economic policies. The company joins a growing list of retail and food-industry casualties, including FAT Brands, which has $1.3 billion in debt, and major Popeyes franchisees who are shuttering over 130 locations.
These failures expose the real-world consequences of fiscal irresponsibility that prioritized woke agendas and government handouts over sound economic management.
Small manufacturers operating on thin margins cannot absorb the commodity and labor cost explosions that resulted from flooding the economy with printed money.
Workers and Creditors Await Court Decision
Approximately 90 Chicago workers face payroll uncertainty as the company operates under debtor-in-possession status while seeking court approval for post-petition financing.
Court filings reveal between 100 and 199 unsecured creditors who may receive only partial repayment. Hearings scheduled for February 3, 2026, at 1:00 PM will address critical motions for financing approval, cash collateral use, and schedule extensions.
Welch expressed hope that the company can “confirm a plan of reorganization down the road” to shed old debt and preserve operations. However, success depends on securing adequate financing and controlling runaway production costs.
Warning Sign for American Manufacturing
Unlike consumer-facing candy brands, Primrose operates as a business-to-business bulk supplier producing confections under private labels for retailers. This model provided little pricing leverage as costs exploded.
The company’s struggle highlights broader vulnerabilities facing American manufacturers, particularly family-owned operations lacking the scale to absorb inflation shocks.
This bankruptcy signals that even businesses with nearly 100 years of operational history cannot withstand the economic turbulence created by years of policy failures.
The outcome will determine whether another piece of American manufacturing heritage survives or joins the growing casualty list of businesses destroyed by economic mismanagement.
Sources:
A nearly century-old U.S. candy manufacturer files for Chapter 11 bankruptcy – WhatNow
98-year-old classic candy brand files for bankruptcy – AOL
