December 5, 2023


Instant Brands, the company behind popular kitchenware brands Pyrex and Instant Pot, has filed for bankruptcy protection due to mounting liabilities reaching up to $1 billion (£790 million). The company attributes its financial struggles to high interest rates and weakened demand. Despite experiencing strong sales during the pandemic when people were confined to their homes, tightening credit terms and higher interest rates impacted the company’s liquidity levels and rendered its capital structure unsustainable. This blog post examines Instant Brands’ bankruptcy filing, the factors contributing to its financial troubles, and the steps the company plans to take during the restructuring process.

Factors Leading to Bankruptcy:

Instant Brands, based in Illinois and owned by private equity firm Cornell Capital, cites several factors that have contributed to its financial distress. While the company experienced robust sales during the pandemic, demand subsequently waned as consumers reduced their spending on household goods. Additionally, higher interest rates and tightening credit terms adversely affected the company’s liquidity. Instant Brands’ financial challenges were exacerbated by a recent downgrade in credit ratings by S&P Global, which highlighted a nearly 22% decline in net sales for the first quarter of 2023 compared to the previous year.

Bankruptcy Proceedings and Plans:

Instant Brands plans to continue operating throughout the bankruptcy process, implementing a comprehensive business shakeup to address its financial woes. The company has appointed Adam Hollerbach as its chief restructuring officer to lead the restructuring efforts. It has also secured $132.5 million in new financing from existing lenders to support its operations during the restructuring period. With over 2,400 employees, Instant Brands aims to emerge from bankruptcy with a restructured business model that can sustain long-term growth.

Impact on the Kitchenware Industry:

Instant Brands’ bankruptcy filing follows a similar warning by Tupperware, another iconic kitchenware brand, which expressed concerns about its ability to continue as a going concern without securing additional financing. The challenges faced by both companies reflect the broader impact of rising costs and changes in consumer spending habits on the kitchenware industry. As inflationary pressures and the cost of essential goods continue to rise, consumers are cutting back on non-essential purchases, impacting the sales of companies operating in this sector.


Instant Brands’ decision to file for bankruptcy protection demonstrates the challenging environment faced by kitchenware brands in the current economic climate. Despite initial success during the pandemic, the company’s liquidity was impacted by factors such as higher interest rates, tightening credit terms, and a decline in consumer spending on household goods. As Instant Brands undergoes restructuring, it seeks to address these challenges and emerge with a sustainable business model. The bankruptcy filing serves as a reminder of the need for companies to adapt to changing market conditions and consumer preferences to ensure long-term viability in the competitive kitchenware industry.

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