Synergy CHC Files Chapter 11 Bankruptcy After Losing Costco Distribution Deal
Synergy CHC Corp., the maker of popular supplements Focus Factor and Flat Tummy, has filed for Chapter 11 bankruptcy. The company cited a significant financial blow from losing its distribution deal with Costco, which accounted for approximately 58% of Synergy's net revenue in fiscal year 2025. Costco had carried the brand for over 16 years before deciding to discontinue it without providing an explanation. The loss of this major retail partner has pushed Synergy into financial distress despite its established presence in other channels like Walmart, Amazon, BJ’s, and Walgreens. The company's flagship product, Focus Factor—a brain supplement marketed with claims about memory support—was highlighted as a top-selling item backed by pharmacist recommendations. The situation highlights the vulnerability of consumer brands reliant on major retail partnerships and underscores challenges within the dietary supplement industry where regulatory oversight is limited compared to pharmaceuticals.
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Topics: bankruptcy retail contracts supplements