Pyrex glassware maker Instant Brands glassware is filing for Chapter 11 bankruptcy protection after persistent inflationary pressures curtailed consumer spending.
Based out of Chicago, the parent company of Instant Pot has more than $500 million in both assets and liabilities, according to a filing made this week with the U.S. Bankruptcy Court for the Southern District of Texas.
In 2020, sales of "electronic multicooker devices," most of which are Instant Pots, peaked at $758 million. Since the beginning of the pandemic, sales had fallen 50% by 2022 to just $344 million.
Meanwhile, data compiled by the NPD Group showed Instant Brands’ dollar and unit sales have also declined 20% from last year in the period ending in April, according to the market research company NPD Group.
Close-up of an Instant Pot cooking appliance in San Ramon, California in 2018. (Smith Collection/Gado/Getty Images)
Last week, S&P Global downgraded the company's rating due to lower consumer spending on discretionary categories and warned that ratings could fall again if Instant Brands seeks bankruptcy protection.
Instant Brands, whose brands also include Corelle, Snapware, CorningWare, Visions and Chicago Cutlery, said it has received a commitment for $132.5 million in new debtor-in-possession financing from its existing lenders.
The company was acquired just four years ago by the private-equity firm Cornell Capital and was subsequently merged with another kitchenware company, Corelle Brands.
Instant Brands' entities located outside the U.S. and Canada are not included in the Chapter 11 filings.