Instant Brands, maker of Instant Pot and Pyrex cookware, files for bankruptcy

[kevinUsa]

In 2019, his company merged with Illinois-based Corelle Brands, the owner of Pyrex, CorningWare, SnapWare and Corelle. The company, which also includes brands like Chicago Cutlery and Visions, claims that 90 per cent of households in the U.S. have at least one of their products in them.

 

The combined company soon expanded the Instant brand name into new products beyond its eponymous cooking device, including air purifiers and coffee machines.

 

warehouse in China

A massive order of Instant Pots is seen in a manufacturer warehouse in China in 2017. (CBC)

But those new Instant-branded gadgets weren't enough to turn the tide of slowing sales. According to ratings agency S&P, the company's sales declined by almost 22 per cent in the first quarter of 2023, the seventh quarterly contraction in a row.

 

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S&P downgraded the company last week and warned that "absent external funding or debt relief, we anticipate Instant Brands will face a liquidity shortfall over the near term."

 

"The company's performance continues to deteriorate amid a weakening macro environment and lower consumer spending on discretionary categories," S&P says.

 

The company didn't disclose exact sales figures in its filings, but market research firm NPD Group says the product category of "electronic multicooker devices" which is dominated by Instant Pot, hit $758 million worldwide in 2020.

 

By 2022, industry-wide sales had plunged 50 per cent to $344 million.

 

Liquidation possible

The company says it has lined up more than $133 million in funding to cover expenses such as employee salaries and benefits, pension obligations, paying suppliers and other obligations while it tries to restructure.

 

Snyder says the company is trying to buy time to come up with a solution that will let them continue to operate, but "it's really up to the creditor at this point because of the size of the debt, whether they are going to let them continue to fund losses."

 

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He says he wouldn't be surprised to see the company be forced to liquidate.

 

"They took on too much debt and now you have a company that was moderately profitable now underwater because of the debt load," he said. "That's a tale as old as time."