Instant Brands, the maker of Instant Pot and Pyrex glassware, has filed for Chapter 11 bankruptcy protection as sales decline and inflation impacts consumers.
Filing details: The company, based outside of Chicago, has more than $500 million in both assets and liabilities, according to the filing with the U.S. Bankruptcy Court for the Southern District of Texas.
* Inflation and shifting consumer spending habits have contributed to the company’s financial struggles.
Sales decline: Sales of “electronic multicooker devices,” most of which are Instant Pots, reached $758 million in 2020, but fell 50% by last year, to $344 million.
* Dollar and unit sales have further declined 20% from last year in the period ending in April.
CEO’s statement: Ben Gadbois, CEO and president of Instant Brands, said that tightening credit terms and higher interest rates have impacted the company’s liquidity levels and made its capital structure unsustainable.
* Instant Brands has received a commitment for $132.5 million in new debtor-in-possession financing from its existing lenders.
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