Instant Brands, the well-known manufacturer behind popular kitchen products like Instant Pot and Pyrex glassware, has filed for Chapter 11 bankruptcy protection.
The Chicago-based company — whose brands also include Corelle, Snapware, CorningWare, Visions and Chicago Cutlery — said in the filing that it has more than $500 million in both assets and liabilities. The company also said it has received a commitment of $132.5 million in new debtor-in-possession financing from existing lenders to sustain operations during the court-supervised process.
High inflation and borrowing rates have squeezed U.S. consumer finances following a pandemic-fueled spending spree on things like household goods and appliances for cooking at home. But spending changed as the world reopened for travel, restaurants and shows.
While some Instant Brands products — like Pyrex and CorningWare — are long established, Instant Pot was launched in 2010 and became a must-have kitchen gadget in recent years. But the gadget has been disappearing from kitchens
The company said sales of its "electronic multicooker devices" reached $758 million in 2020 during the start of the COVID-19 pandemic, but plummeted 50% last year to $344 million. Instant Brands president and CEO Ben Gadbois said the company was able to successfully navigate the pandemic and global supply chain crisis, but is now running short on cash.
Corporate bankruptcies this year hit highest level since 2010
Party City, Bed Bath & Beyond, and mattress seller Serta Simmons are just some of the nearly 300 corporations that have filed for bankruptcy so far.
"Tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable," Gadbois said in a statement. "In recent months, we have been working closely with all of our financial stakeholders to position the company for its next phase of success."
Instant Brands said its products can be found in approximately 90% of homes in the United States and millions of others around the world. The company was acquired by the private equity firm Cornell Capital in 2017 and merged with glass and dishware company Corelle Brands.
"As we move through this process, we remain focused on serving and connecting with our consumers around the world, and we are grateful for their trust in us and our products," Gadbois added.
Instant Brands' bankruptcy filing will not include entities located outside the U.S. and Canada.
