Focus Factor maker Synergy CHC files for Chapter 11 after Costco drops its products
Synergy CHC Corp., the company behind the brain supplement Focus Factor, has filed for Chapter 11 bankruptcy. The filing comes weeks after Costco told the company it would stop carrying its items.
Costco accounted for roughly 58% of Synergy’s net revenue in the fiscal year that ended December 31, 2025. The warehouse club informed Synergy on July 15, 2026, that it would discontinue the Focus Factor line after more than 16 years as a customer.
The Costco decision
Synergy said in an SEC filing that it expects Costco’s decision to have a “material adverse effect” on its business, results of operations, liquidity, and financial condition. The company said it is evaluating available financing and other strategic alternatives.
Costco did not give a reason for dropping the brands.
Synergy CHC Corp. filed Chapter 11 on Sept. 4, 2026, in the U.S. Bankruptcy Court for the District of Columbia, case 26-00465. The company trades publicly as SNYR.
The petition lists assets of $1 million to $10 million and liabilities of $10 million to $50 million. It names 1-49 creditors.
What Synergy makes
Synergy develops and markets consumer health and wellness items. Its main brands are Focus Factor and Flat Tummy.
“Focus Factor, a clinically studied brain health supplement and functional beverage line with a 25-year legacy, enjoys established distribution in the U.S., Canada, and Mexico through major retailers including Walmart, Amazon, BJ’s, and Walgreens, among others,” the company said in a press release.
The company describes Focus Factor on its Amazon sales page as a “Brain Supplement for Memory, Concentration and Focus.” It also markets Focus Factor Extra Strength as something that can “replace your daily multivitamin.”
“Like other parts of your body, your brain needs proper nutrition to perform its best. This advanced formula improves and enhances memory, concentration, and your ability to focus,” the company added on Amazon.
Synergy also cites a survey of pharmacists. “Focus Factor is the #1 Pharmacist Recommended Brand based on the results of the U.S. Pharmacy Times Survey of Pharmacists’ OTC Recommendations for ‘Memory Support’ dietary supplement, 2025-2026,” the company shared.
How supplements avoid FDA approval
The FDA does not approve supplements the way it approves drugs. Supplement makers can make certain claims about structure and function without FDA approval in advance, as long as they have proof the claims are truthful and not misleading.
“The manufacturer must have substantiation that the claim is truthful and not misleading and must submit a notification with the text of the claim to FDA no later than 30 days after marketing the dietary supplement with the claim,” the FDA website says.
Labels must also carry a disclaimer. “The disclaimer must also state that the dietary supplement product is not intended to ‘diagnose, treat, cure or prevent any disease,’ because only a drug can legally make such a claim,” the agency said.
This legal grey area lets supplements advertise benefits for fitness, hair growth, sleep, and focus.
Costco still sells rivals
Costco continues to stock other supplement and functional beverage brands. It recently added Hiyo, a drink line in the functional beverage space.
“Made with organic adaptogens, natural nootropics, and functional botanicals, each can offers what the brand calls a ‘mood-enhancing, stress-relieving lift,’ or ‘the float,'” according to a press release.
The FDA regulates ingredients and requires drink labels to be truthful. The Federal Trade Commission can step in if companies make false claims.
“Functional beverage makers generally make less specific claims, and the science behind them is sometimes inconclusive,” The Chicago Sun-Times reported. It noted that SkinTe, a sparkling tea, says it “supports skin hydration and elasticity” with 3,000 milligrams of collagen in a 12-ounce can. Harvard Medical School researchers said last year there is not yet solid evidence that collagen drinks or supplements enhance skin, hair, or nail growth.
Bankruptcy details and Nasdaq notice
Synergy CHC Corp. filed its petition with DBAs listed as Synergy Strips Corp. and Focus Factor Nutrition Labs. Its headquarters are in Sebago, Maine.
Synergy Reorg, LLC also filed for Chapter 11 on Sept. 4. Despite the similar name, the two cases do not appear to be connected.
Synergy also faces a listing issue. It received a notice from The Nasdaq Stock Market on August 20 indicating it is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.
No reason for the Costco decision has been made public.
| Key dates | |
|---|---|
| July 15, 2026 | Costco informs Synergy it will drop Focus Factor |
| August 20 | Nasdaq non-compliance notice |
| Sept. 4 | Chapter 11 filing |
Key facts
- Costco was about 58% of Synergy’s net revenue in fiscal 2025
- Costco had been a customer for more than 16 years
- Assets: $1 million to $10 million
- Liabilities: $10 million to $50 million
- Case: 26-00465, U.S. Bankruptcy Court for the District of Columbia
The company now faces an uncertain path through bankruptcy. Its biggest retail partner is gone, and its stock listing is in question.
Source: finance.yahoo.com
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