Loss of Costco deal helps push beverage brand into Chapter 11

Beverage brand Focus Factor, produced by Synergy CHC Corp., has filed for Chapter 11 bankruptcy, following Costco's decision to discontinue carrying the company's products. Costco, a significant customer for Synergy CHC for over 16 years, accounted for approximately 58% of the company's net revenue in the fiscal year ended December 31, 2025.

The company expected the drop to have a material adverse effect on its business, results of operations, liquidity, and financial condition. Synergy CHC's Focus Factor, marketed as a Brain Supplement for Memory, Concentration, and Focus, makes bold claims about its benefits, but the FDA only requires substantiation that the claims are truthful and not misleading.

The company's petition for bankruptcy identifies its DBAs as Synergy Strips Corp. and Focus Factor Nutrition Labs.