Instant Pot, Pyrex maker files for Chapter 11 bankruptcy
Instant Brands CEO Ben Gadbois has called the "capital structure unsustainable."
Instant Brands, the parent company of beloved kitchenware and houseware brands like Pyrex glassware and Instant Pot, has filed for Chapter 11 bankruptcy protection.
Earlier this week, Instant Brands announced the voluntary court-supervised process in a press release, stating that it will give the company "time and flexibility" for ongoing discussions with financial stakeholders to move forward in a way that "strengthens the company’s financial position."
The company has over $500 million in both assets and liabilities, according to its filing with the U.S. Bankruptcy Court for the Southern District of Texas.
The Chicago area-based company said it received a $132.5 million commitment for new debtor-in-possession financing from its existing lenders that, paired with cash from current operations, it expects will support the business during the process.
President and CEO Ben Gadbois said in Monday's press release that the company "continues to drive positive operating cash flows." However, after weathering the COVID-19 pandemic, the company faces challenges, including "tightening of credit terms and higher interest rates," he said. This had caused an impact on the company's liquidity levels and made its "capital structure unsustainable," he said.
Although Instant Pots were a hit countertop appliance even before the pandemic, sales on "electronic multicooker devices" -- which includes Instant Pots -- peaked at $758 million in 2020, according to the Associated Press. Those sales dropped by 50% within the last year to just $344 million.
Four years ago, private-equity firm Cornell Capital acquired Instant Brands and it merged with Corelle Brands. Additional consumer products under the parent company include Corelle, Snapware, CorningWare, Visions and Chicago Cutlery.
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