Every twentysomething’s favorite appliance—the Instant Pot—is ready to blow. The gadget’s parent company, Instant Brands, filed for Chapter 11 Bankruptcy in Texas Monday.
“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,” said Instant Brands president and CEO Ben Gadbois in a press release.
Instant Brands—which is also responsible for Pyrex cookware, CorningWare, Chicago Cutlery, and more—announced the news via press release yesterday, cited rising interest rates and slashed credit as a reason for the filing. The company announced the news via press release yesterday, and further disclosed that it is seeking $132.5 million in financing which, if approved by the court, will help the company pay off its remaining creditors while weather the bankruptcy process.
“In particular, tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable,” said Gadbois.
Instant Brands’ crown jewel is the Instant Pot, a pressure cooker/slow cooker/steamer/rice maker jack of all trades, master of none. The appliance is wildly popular amongst millenials and Gen Z as a convenient way to make “lazy mom meals” and cheap dump dinners all in one pot—which makes the bankruptcy filing even more baffling.
In a letter to retailers, Gadbois disclosed that “retail partners remain our top priority” and that the company is expecting to fulfill stock requirements without interruption as Instant Brands attempts to strengthen its economic position through the bankruptcy filing. At the same time, Gadbois addressed its former employees and retirees in another letter, explaining that all benefits should still be met.
Instant Brands is also commencing ancillary bankruptcy proceedings in Canada under the Companies’ Creditors Arrangement Act to seek recognition of the American bankruptcy filing. Despite this, the company says that its brands outside the U.S. and Canada are not included in the filing.