Under pressure: Company behind Instant Pot and Pyrex files for bankruptcy
For years, Instant Pot, the ubiquitous multipurpose pressure cooker, was on many people’s wishlists and remains a beloved kitchen gadget with a massive cult following online.
But despite the success, Instant Brand, the company that owns Instant Pot and other popular homeware brands, has found itself in a financial predicament.
On Monday, June 12, the company announced that it has filed for bankruptcy due to a variety of factors.
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“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,” stated Ben Gadbois, president and CEO of Instant Brands, in a letter to the brand’s retail partners.
The company found itself in this position due to stricter credit terms and higher interest rates affecting “liquidity levels,” which made its capital structure unstable.
According to Bloomberg, in a bankruptcy petition filed in Texas, Instant Brands listed assets and liabilities worth around US$1 billion (C$1.3 billion).
The company is expecting to receive US$132.5 million in financing.
And it’s not just in the US — in Canada, the company has started proceedings to apply for the Companies’ Creditors Arrangement Act (CCAA).
Instant Brands stated that it will continue to operate as it awaits the court-supervised process. The company details its restructuring plan online and states that it will continue to serve retail partners, work with vendors and suppliers, pay employees and provide benefits.
The company also owns Instant®, Pyrex®, Corelle®, Corningware®, Snapware®, Chicago Cutlery®, ZOID® and Visions®.
The multipurpose pressure Instant Pot was created in 2009 by Ottawa-based inventor Robert Wang and his friends.
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