Pyrex and Instant Pot Maker Files for Chapter 11 Protection — Retail Bum

Instant Brands, the maker of Pyrex and instant pot pressure cookers, has filed for bankruptcy in the Southern District of Texas as high borrowing costs have taken a toll on its business.

The company is looking to restructure as much as $1 billion in liabilities to continue to serve its retail partners without interruption and make payroll for its 2,400 employees. Through bankruptcy protection, the company is also hoping to avoid having to sell its best-selling kitchenware brands.

Ben Gadbois, Instant Brands’ CEO, noted that the company is working with its investors to prepare the company for its next phase of growth even as it falls into bankruptcy.

“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,” Gadbois said. “In particular, tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable.”

Instant Brands’ move to file for bankruptcy may come as a surprise since the brand’s products are today used in nearly 90% of U.S. households, according to the Guardian. However, rising interest rates in the U.S. and abroad have left many businesses with large debts, increasing their exposure to new risks.

Tupperware, for example, is another player that recently warned that it might have to soon file for bankruptcy if it cannot raise fresh funding. As of April 2023, the company had lost 50% of its stock value.

Originally published at https://retailbum.com on June 15, 2023.