Beloved candy chain files Chapter 11 bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

While Willy Wonka made it look easy, running a candy brand when you can’t rely on unpaid Oompa Loompa labor comes with added challenges.

Fine chocolate and other candy counts as a luxury item, and Americans have been cutting back on luxury and discretionary items.

“Among all U.S. adults, 39% say they plan to spend less on dining out, 39% plan to cutback on live entertainment spending (i.e., concerts, sporting events, and theaterperformances), and 38% intend to decrease their travel spending this year,” according to a survey conducted by Bankrate.

This includes 26% who plan to spend much less on live entertainment, 24% who plan to spend much less on travel, and 20% who plan to spend much less on dining out.
Only 33% are planning to spend more in at least one discretionary spending category this year, with 22% planning to spend more on travel, 19% on dining, and 15% on live entertainment.

“The cumulative effects of inflation and high interest rates have been straining households, contributing to record levels of credit card debt and causing consumer sentiment to plummet,” explained Bankrate Senior Industry Analyst Ted Rossman.

Bluntly, that makes a high-priced, fanciful, chocolate-based restaurant and retail experience a tough sell for consumers. Max Brenner offered high-end dining experiences coupled with a pricey retail candy offering.

The company’s New York operations have filed for Chapter 11 bankruptcy, according to documents filed on Inforuptcy.

Max Brenner files Chapter 11 bankruptcy

“Max NY Union Square LLC, a New York, NY-based full-service restaurant and confectionery retailer, filed for chapter 11 protection on February 10, 2026, in the Southern District of New York,” according to a post on X, the former Twitter, by RK Consulting, which tracks Chapter 11 bankruptcy filings.

The company currently operates the Max Brenner flagship location in Union Square, providing a combination of full-service dining and chocolate retail. As of 2025, the entity is under European ownership following an asset purchase and has recently faced federal litigation involving its landlord, 841-853 Fee Owner LLC.

More Bankruptcy:

Its New York flagship remains open during the Chapter 11 proceedings.

“Historically, the 841 Broadway site has functioned as a Max Brenner location since 2006, with the current debtor entity assuming operations in mid-2025,” RK Consultants added.

The company employees between 40 and 60 people, as of 2025.

Max Brenner bankruptcy facts

The Max NY Union Square LLC entity (operating the Max Brenner Chocolate Factory in Manhattan) filed for Chapter 11 bankruptcy protection in the Southern District of New York on February 10, 2026, seeking to reorganize under court supervision, according to Inforuptcy.
This Chapter 11 filing means the business intends to restructure its debts and continue operations while creditors are dealt with through the bankruptcy process.
The 2026 bankruptcy case assigns Judge Martin Glenn and establishes a 341 meeting of creditors scheduled for March 12, 2026 as part of the process, added Inforuptcy.
Max Brenner’s Australian operations previously fell into voluntary administration in 2018 amid declining sales, a process akin to financial restructuring that put about 37 stores under review and threatened many jobs, according to Insolvency Guardian.
Following the administration in Australia, roughly 20 of those 37 Australian stores were closed, and the business narrowly avoided complete liquidation after a last‑minute licensing deal to keep some stores running, added Insolvency Guardian.
The current bankruptcy in the U.S. focuses on the company’s New York operations. Any other locations are not impacted.

Former CEO Sam Borgese explained the company’s restaurant and retail concept to QSR Magazine.

“It’s an experiential environment where you walk in and you get the smell and atmosphere of chocolate. It’s much more vibrant, much more alive, much more engaging [than other chocolate shops],” he said. “It encourages you to be indulgent. It encourages you to look at chocolate in a different way. “

Experiential restaurant concepts built around indulgence tend to expand aggressively in strong consumer cycles, but they are often among the first to feel strain when discretionary spending tightens.

High-end chocolate is a luxury item.

Shutterstock

A Max Brenner timeline

Max Brenner was created in Israel in the mid‑1990s by Oded Brenner and Max Fichtman as a unique chocolate‑centric experience blending desserts and playful dining, according to the Max Brenner website.
The company expanded globally after joining the Strauss Group in 2001, which helped it grow into an international chocolate‑restaurant brand, the Strauss Group shared.
Max Brenner opened its first U.S. location in Manhattan near Union Square in 2006, introducing the chocolate restaurant concept to New York City, the New York Sun reported.
The Union Square location was a large, Willy‑Wonka–style chocolate restaurant and retail space that quickly became a destination for dessert lovers and tourists, added New York Sun.
Over time the NYC restaurant became known for creative chocolate‑focused dishes and desserts, making it a popular local spot, according to Nova Circle.
Strauss Group sold Max Brenner’s international operations, including the U.S. restaurants, to its Israeli franchisees in 2017, according to a Strauss Group press release.
In December 2021, Max Brenner opened a retail and hot chocolate shop in Times Square, expanding its NYC presence beyond the Union Square restaurant, City Tour NY reported.
Today, Max Brenner’s U.S. footprint includes the Union Square restaurant and the Times Square retail location in New York City, the company’s website shared.