Pyrex and Instant Pot manufacturer declares bankruptcy
The creator of Pyrex glassware and Instant Pot multicookers has declared bankruptcy, citing close to $1 billion (£790 million) in liabilities.
Instant Brands attributes its issues to high interest rates and little demand.
The company, which employs over 2,400 people, intends to continue operations as it restructures the business.
Tupperware, another popular kitchenware business, warned in April that it would go bankrupt unless it could rapidly secure new finance.
According to Instant Brands, sales were up during the pandemic because individuals were confined at home.
However, Ben Gadbois, the company’s president and CEO, stated that “tightening credit terms and higher interest rates impacted our liquidity levels and rendered our capital structure unsustainable.”
As part of the bankruptcy process, the company named Adam Hollerbach as its chief restructuring officer, who stated in a court statement that sales decreased as consumers began to spend less on household products during the epidemic.
The Illinois-based company, which is managed by private equity firm Cornell Capital, stated that it will continue to operate during the restructuring process with the assistance of $132.5 million in new financing from its existing lenders.
S&P Global downgraded Instant Brands last week, stating that its net sales for the first three months of 2023 were down nearly 22% year on year.
The announcement comes as individuals cut back on non-essential spending as the cost of everything from food to power continues to rise.
Instant Brands agreed to pay a fine and amend its marketing practices in January to settle FTC allegations that it fraudulently sold Pyrex glass measuring cups as “Made in USA” while importing some of them from China.
In addition to the more than a century-old cookware brand Pyrex and the Instant Pot, which debuted in 2010, Instant Brands’ portfolio includes kitchenware brands Corelle, CorningWare, and Snapware.
Tupperware, a US manufacturer of food storage containers, warned in April that it would go bankrupt unless it can rapidly secure new finance.
According to the 77-year-old company, there is “substantial doubt about its ability to continue as a going concern.”
Tupperware has been seeking to rebrand itself to a younger audience, but has been unable to reverse its sales decline.