A maker of popular kitchen appliances and glassware for cooking is seeking bankruptcy protection.
It's blaming higher interest rates, among other issues.
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"After successfully navigating the COVID-19 pandemic and the global supply chain crisis, we continue to face additional global macroeconomic and geopolitical challenges that have affected our business,’ said Ben Gadbois, CEO of Instant Brands immediately after the filing. “In particular, tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable."
Instant Brands is the parent company of Instant Pot, CorningWare, and other houseware and kitchenware companies, including the popular Pyrex line of glass cookware.
The privately held Illinois-based company filed for Chapter 11 bankruptcy on June 12.
Filing bankruptcy “provides the company time and flexibility to continue ongoing discussions with all of its financial stakeholders in an effort to achieve a consensual path forward that strengthens the company’s financial position,” the company added in a statement.
Instant Brands has between $500 million and $1 billion in total assets and liabilities, and just announced a $132.5 million debtor-in-possession funding deal from lenders. It also announced it will keep its doors open during the bankruptcy proceedings.
“Following court approval, this new financing, combined with cash generated from the Company's ongoing operations, is expected to support the business during the court-supervised process,” the company reported on June 12.
While kitchen cookware products like Instant Pot were selling like hotcakes before the pandemic, sales have slowed down in the last two years, most notably due to higher prices and inflation, glacial supply chain processes, and budget-minded household consumers.
Instant Pot sales clocked in at $758 million in 2020 but slid to $344 million in 2022, The Wall Street Journal reported, citing NPD Group, a market research firm.
