Canadian-founded Instant Brands, makers of Instant Pot and Pyrex, files for bankruptcy

Instant Brands, the maker of Pyrex kitchenware, filed for chapter on Monday, saying it had an excessive amount of debt to resist rising rates of interest and tighter credit score circumstances.

The firm, managed by personal fairness agency Cornell Capital LLC, and 14 associates filed for Chapter 11 safety from collectors with the federal chapter courtroom in southern Texas, with as a lot as US$1 billion of property and liabilities.

Instant Brands stated it plans to maintain working whereas it restructures, and towards that finish has lined up US$132.5 million in financing. Entities positioned outdoors the United States and Canada usually are not in search of courtroom safety.

“Tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable,” Chief Executive Ben Gadbois stated in an announcement.

The Downers Grove, Illinois-based firm didn’t instantly reply to a request for extra remark.

Instant Brands’ portfolio additionally consists of merchandise resembling Instant Pot stress cookers and Corningware.

In January, Instant Brands agreed to pay a positive and alter its advertising and marketing practices to settle U.S. Federal Trade Commission claims that it falsely marketed Pyrex glass measuring cups as “Made in USA” whereas importing a few of them from China.

Davis Polk & Wardwell is Instant Brands’ legislation agency, and AlixPartners is its restructuring adviser.

The case is In re: Instant Brands Acquisition Holdings Inc, U.S. Bankruptcy Court, Southern District of Texas, No. 23-bk-90716.

(Reporting by Jonathan Stempel in New York; Editing by Bill Berkrot)