NEW YORK -- Instant Brands, the maker of Instant Pot, Corelle, and Pyrex, among other products, has filed for bankruptcy.
The Chapter 11 bankruptcy filing came on Monday. Chapter 11 bankruptcy allows for a reorganization of the company, rather than its liquidation in a Chapter 7 filing, CNN reported,
The company blamed tighter credit and higher interest rates as contributing factors in the filing. But the company added that it has seen rapid growth since the start of the pandemic, entering several new product categories and expanding its global footprint. It listed more than $500 million in both assets and liabilities, and said it has received $132.5 million in additional financing from its existing lenders as part of its bankruptcy process.
Instant Brands was purchased by private equity firm Cornell Capital in 2017. While some of its products, such as Pyrex and CorningWare are long established brands - Pyrex is 108 years old, and CorningWare is 65 - Instant Pot was only launched in 2010. The company said that at least one of its products can be found in 90% of US homes.
The bankruptcy filing under Chapter 11 allows a company to stay in business as it sheds debt and other costs it cannot afford. Several companies have filed for bankruptcy in a similar manner in the past, including General Motors and most of the nation's major airlines, and gone on to subsequently report record profits.
The filing grants Instant Brands the "time and flexibility to continue ongoing discussions with all of its financial stakeholders," according to a statement announcing the filing.
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