Primrose Candy Co., a cherished Chicago-based confectionery that has been crafting nostalgic sweets since 1928, has filed for Chapter 11 bankruptcy protection. The family-owned company, renowned for its old-school hard candies, taffy, and flavoured popcorn often reminiscent of grandma's house, made the filing on Tuesday under mounting financial pressures.
Financial Struggles and Mounting Liabilities
The nearly century-old candy maker reported assets estimated between $1 million and $10 million, while its liabilities are staggering, estimated at between $10 million and $50 million. Revenue has also seen a sharp decline, with Primrose generating $7.8 million in 2025, down significantly from $11.8 million the previous year.
David Welch, a Chicago-based attorney representing the company, explained the dire situation to the Chicago Tribune. 'What we have is a lot of old, old debt that we just can't afford to pay in its entirety,' he stated. '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.'
Key Factors Behind the Bankruptcy Filing
Several critical issues converged to push Primrose toward this drastic measure. Mounting pressure from lower-cost foreign competitors has eroded the company's market position. Additionally, the loss of a major manufacturing partner, responsible for nearly half of Primrose's revenue, delivered a severe blow to its financial stability.
Soaring production costs, particularly for sugar, have further strained operations. The Sweetener Users Association reported that in 2023, US sugar prices were approximately 105 percent higher than global prices—effectively double the world rate. 'The cost of making that same piece of candy is so much more than what it used to be,' Welch lamented, highlighting how smaller companies like Primrose struggle to absorb such increases compared to giants like Hershey.
Legal Battles and Contract Losses
Legal challenges have also weighed heavily on the company. A class-action lawsuit alleged that Primrose illegally collected employees' fingerprints without proper consent, violating Illinois' Biometric Information Privacy Act. While denying the allegations, the company agreed to a settlement of up to $125,000.
More significantly, Labor Solutions, a suburban Chicago staffing agency that provides most of Primrose's 90-person workforce and serves as its largest unsecured creditor, filed a breach of contract lawsuit. The company now owes the agency $7.5 million, adding to its financial woes.
Primrose also lost two major lemon drop production contracts, which it attributes to competitors relocating internationally. This resulted in approximately $1 million in lost annual production revenue.
Path Forward: Reorganisation and Hope
The Chapter 11 filing places Primrose into court-supervised reorganisation, offering a last-ditch chance to restructure its debts and potentially remain in business rather than facing immediate liquidation. On January 27, the company turned to Chapter 11 in the Northern District of Illinois to preserve its Midwest operations.
In 2024, Primrose secured a $7.5 million line of credit from Pathward, which it now seeks court permission to use for daily operations during reorganisation. The company argues that maintaining access to these funds is 'essential to keeping the candy business as a going concern,' warning that without them, operations could cease entirely.
Despite the ongoing lawsuit from Labor Solutions, Welch noted that both the staffing agency and the loan lender are supportive of the bankruptcy filing, providing a glimmer of hope for the company's future.
A Legacy of Sweet Success
Founded by Frank and Mae Puch with just $500 and experience from other Chicago candy companies, Primrose has evolved over decades. From its origins as a hard candy maker, it transformed into a full confectionery, offering chewy candies, popcorn, caramels, saltwater taffy, and vibrant peppermints.
Today, Primrose's candies are sold in bulk to retailers under other brands, yet they remain the nostalgic treats that might still be found in a grandmother's purse. As the company navigates this challenging chapter, its nearly century-old legacy hangs in the balance, with hopes pinned on a successful reorganisation that could sweeten its future prospects.
