Instant Brands Files for Bankruptcy
June 13, 2023
Source: HFN
DOWNERS GRIVE, Ill. — Instant Brands, the parent company of Instant Pot, Pyrex, CorningWare, Chicago Cutlery and other big household names, has filed for Chapter 11 protection, citing unsustainable debt and other macro-economic challenges.
The company has received $132.5 million in new debtor-in-possession financing from its existing lenders that, combined with cash from ongoing operations, is expected to support the business, subject to court approval, the company said. The first hearing will be held today, June 13, at 3 p.m. CT in the U.S. Bankruptcy Court for the Southern District of Texas.
In addition, the company has begun ancillary proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) seeking recognition of the U.S. Chapter 11 proceedings in Canada.
The company’s entities located outside the U.S. and Canada are not included in the Chapter 11 filings.
Over the past three years, the company employed several strategies to build a profitable business, President and CEO Ben Gadbois said in a release. They include innovations in its core business, new product categories, an expanded global footprint, improvements in leveraging its global infrastructure and “best-in-class global consumer engagement” digitally.
But it was not enough.
“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. In recent months, we have been working closely with all of our financial stakeholders to position the company for its next phase of success.”
In a letter to retailers posted on its restructuring website, the company said it does not expect the filing to change its ability to serve them: it will continue to provide product and will not make any changes to agreed upon payment plans.
The company also said that, with court approval, it will continue to pay its employees and offer them benefits without interruption, and intends to pay vendors, suppliers and distributors in full under normal terms for goods and services provided on or after the filing date.
It also said it will honor all retirement benefits and payments.
Instant Brands has appointed Adam Hollerbach, partner and managing director of Alix Partners, as chief restructuring officer.
Instant Brands merged with Corelle Brands in 2019.
The company has received $132.5 million in new debtor-in-possession financing from its existing lenders that, combined with cash from ongoing operations, is expected to support the business, subject to court approval, the company said. The first hearing will be held today, June 13, at 3 p.m. CT in the U.S. Bankruptcy Court for the Southern District of Texas.
In addition, the company has begun ancillary proceedings in Canada under the Companies’ Creditors Arrangement Act (CCAA) seeking recognition of the U.S. Chapter 11 proceedings in Canada.
The company’s entities located outside the U.S. and Canada are not included in the Chapter 11 filings.
Over the past three years, the company employed several strategies to build a profitable business, President and CEO Ben Gadbois said in a release. They include innovations in its core business, new product categories, an expanded global footprint, improvements in leveraging its global infrastructure and “best-in-class global consumer engagement” digitally.
But it was not enough.
“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. In recent months, we have been working closely with all of our financial stakeholders to position the company for its next phase of success.”
In a letter to retailers posted on its restructuring website, the company said it does not expect the filing to change its ability to serve them: it will continue to provide product and will not make any changes to agreed upon payment plans.
The company also said that, with court approval, it will continue to pay its employees and offer them benefits without interruption, and intends to pay vendors, suppliers and distributors in full under normal terms for goods and services provided on or after the filing date.
It also said it will honor all retirement benefits and payments.
Instant Brands has appointed Adam Hollerbach, partner and managing director of Alix Partners, as chief restructuring officer.
Instant Brands merged with Corelle Brands in 2019.
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