Instant Brands, Maker of Instant Pot and Pyrex, Files for Bankruptcy
Instant Brands, the manufacturer of popular products like Instant Pot, Corelle, and Pyrex, has filed for bankruptcy under Chapter 11.
This type of bankruptcy allows for the reorganization of the company rather than its complete liquidation.
The filing occurred on Monday, citing tighter credit and higher interest rates as factors contributing to the decision.
Despite these challenges, Instant Brands highlighted its rapid growth during the pandemic, expanding into new product categories and increasing its global presence.
The company disclosed over $500 million in both assets and liabilities, and it secured $132.5 million in additional financing from existing lenders as part of the bankruptcy process.
In 2017, Instant Brands was acquired by private equity firm Cornell Capital. While some of its brands, such as Pyrex and CorningWare, have long-standing histories, with Pyrex being 108 years old and CorningWare 65 years old, Instant Pot was launched more recently in 2010.
The company emphasized that at least one of its products can be found in 90% of households in the United States.
Chapter 11 bankruptcy allows a company to continue operating while reducing its debt and eliminating unsustainable costs.
Several notable companies, including General Motors and major airlines, have utilized this type of bankruptcy and subsequently rebounded to report record profits.
According to the announcement of the filing, Instant Brands will utilize the Chapter 11 process to engage in ongoing discussions with its financial stakeholders, providing the company with time and flexibility to address its financial situation.
