Consumers can become disappointed and distraught whenever their favorite products disappear from store shelves.
One of the most popular products that disappeared, but only temporarily, was Hostess Brands, which in 2012 filed bankruptcy, ceased operations and liquidated.
Related: Bankrupt Home Depot rival forced to liquidate remaining stores
The company, which manufactured Twinkies, Ho Hos and Ding Dongs disappeared from stores for many months until J.M. Smucker in September 2012 agreed to purchase the defunct company for about $5.6 billion.
Another manufacturer of iconic products, Basic Fun!, on June 28 filed for Chapter 11 bankruptcy to restructure its business, but won't remove any of its popular products from stores.
Among Basic Fun! products are classic toys, such as Tonka, Lincoln Logs, Tinker Toys, Fisher Price Classics, Care Bears, Lite Brite, Playhut, Uncle Milton, Mash'ems and Littlest Pet Shop.
Basic Fun! began having severe financial problems after Toys "R" Us filed bankruptcy and liquidated in 2018. The Covid-19 pandemic exacerbated the company's distress.
Related: Mattress Firm rival files for Chapter 11 bankruptcy
A combination financial distress factors have led a variety of other retail brands to file for bankruptcy protection since the Covid-19 pandemic. High inflation, rising interest rates, a decline in consumer discretionary spending and tight retail competition are among the top reasons retail businesses are facing financial hardship.
Tervis files Chapter 11 bankruptcy to reorganize
Popular drinkware maker Tervis Tumbler Co. on Sept. 5 filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida to reorganize its business.
The debtor listed $10 million to $50 million in liabilities and assets in its petition.
More bankruptcy stories:
- Another popular ice cream brand files for Chapter 11 bankruptcy
- Popular burger chain faces likely Chapter 11 bankruptcy
- Huge shipping company files Chapter 11 bankruptcy to liquidate
Tervis cited a combination of a sharp decline in e-commerce sales, long-lasting drop in consumer discretionary spending, rising operating expenses, unprofitable retail locations, and a lingering lawsuit from 2018 for filing its petition, Business Observer reported.
The Venice, Fla., debtor also suffered from a major industry disruption when in 2014 and 2015 stainless steel drinkware brands, such as Hydroflask, Yeti and Swell, entered the drinkware market.
Tervis entered the stainless steel drinkware market in 2016, but reportedly had difficulty competing with larger brands on price at retail locations and didn't meet consumer expectations on product quality regarding chipping and peeling until January 2023.
Tervis, which is the world's first permanently sealed, double-walled, insulated tumbler, was founded in 1946 by Frank Cotter and G. Howlett Davis, who combined the last three letters of their last names to create the name of their company, according to its website.
Entrepreneur John C. Winslow purchased the rights to Tervis drinkware in 1967 and began marketing it at marinas, golf courses and various retail stores and kept expanding. The company is now a third-generation family-owned and operated company.
An important feature of Tervis customized cup is the licensing of various brands that include Disney; Harry Potter; Marvel; DC; Peanuts; Sesame Street; NFL, NBA, MLB and NHL sports teams; and collegiate logos. The company currently maintains 50 licensing agreements for its tumblers.
The company also operates eight Tervis retail stores in four states. The stores are located in Ellenton, Key West, Osprey, Panama City Beach and St. Augustine, Fla.; Frankenmuth, Mich.; Myrtle Beach, S.C.; and Pigeon Forge, Tenn.
Tervis products are also available at various retailers, including Walmart, Target, Kohl's, Home Depot and a number of sports merchandise stores.
Related: Veteran fund manager sees world of pain coming for stocks
