Instant Brands, the company behind Pyrex and Instant Pot, has filed for bankruptcy

The manufacturer of Pyrex glassware and Instant Pot multicookers has sought bankruptcy protection, facing liabilities of up to $1 billion (£790 million).

Instant Brands attributes its challenges to high interest rates and sluggish demand. Despite these difficulties, the company, employing over 2,400 workers, intends to continue operating while implementing a comprehensive restructuring of its business.

Following in the footsteps of Tupperware, another renowned kitchenware brand, Instant Brands, has issued a warning that it may face insolvency unless it secures prompt financing.

Instant Brands reports robust sales during the pandemic as individuals were confined to their homes.

According to Ben Gadbois, the President and CEO of Instant Brands, the tightening of credit terms and higher interest rates have had a detrimental effect on the company’s liquidity levels, rendering its capital structure unsustainable.

In the course of its bankruptcy proceedings, the company has designated Adam Hollerbach as its chief restructuring officer. In a court filing, Hollerbach noted that sales declined as consumers reduced their expenditures on household goods following the pandemic.

Amidst the restructuring process, the Illinois-based company, controlled by private equity firm Cornell Capital, has affirmed its commitment to ongoing operations. It will receive $132.5 million in new financing from its existing lenders to facilitate this process.

Instant Brands recently experienced a downgrade in its credit rating by S&P Global. The agency noted that the company’s net sales for the first quarter of 2023 declined by nearly 22% in comparison to the same period the previous year.

The announcement coincided with a backdrop of individuals reducing non-essential expenses due to the rising costs of essential items such as food and electricity.

In January, Instant Brands reached a settlement with the US Federal Trade Commission (FTC) regarding false advertising allegations. The company agreed to pay a fine and modify its marketing practices after it was found that some Pyrex glass measuring cups, despite being marketed as “Made in USA,” were actually imported from China.

Instant Brands’ portfolio encompasses not only the well-established cookware brand Pyrex, which has been around for over a century, and the relatively newer Instant Pot, introduced in 2010, but also includes other prominent kitchenware brands such as Corelle, CorningWare, and Snapware.

In April, Tupperware, the American manufacturer of food storage containers, issued a warning that it faces the risk of insolvency unless it can promptly secure additional financing.

The 77-year-old company expressed significant uncertainty about its capability to sustain its operations as a going concern.

Despite Tupperware’s efforts to reposition itself towards a younger demographic, the company has been unable to halt the decline in its sales.



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By Ryan

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