Instant Brands, the creators of Instant Pot, Pyrex, and many more kitchen products, filed for Chapter 11 Bankruptcy at the beginning of June. The motivation behind the filing is to allow the company to reorganize itself instead of liquidation under a Chapter 7 filing. Unfortunately, tighter credit and higher interest rates are some of the culprits for the filing initiation despite the company’s rapid growth at the beginning of the pandemic. One of the benefits of a Chapter 11 bankruptcy filing is the company has the power to stay in business as it alleviates debt and other unaffordable costs. Moreover, the company has listed over $500 million in assets and liabilities and has received over $130 million in additional financing from existing lenders. The company said that at least one of its products is in 90% of US homes.
The bankruptcy filing under Chapter 11 allows a company to stay in business as it sheds debt and other costs it cannot afford. Several companies have filed for bankruptcy in a similar manner in the past, including General Motors and most of the nation’s major airlines, and gone on to subsequently report record profits.
Source: Instant Brands, maker of Instant Pot and Pyrex, files for bankruptcy | CNN Business