The company behind such huge names as Instant Pot, Corelle and Pyrex has filed for Chapter 11 bankruptcy.
Instant Brands filed paperwork declaring bankruptcy on Monday to allow it to reorganize, CNN reported.
The filing was made in federal bankruptcy court in Houston, Reuters reported.
The move will allow the business to continue while it tries to get rid of debt and other costs that it can’t afford.
The company said it faced challenges due to tight credit and higher interest rates, but at the same time, the company grew since the start of the pandemic, adding several products and expanding its reach, CNN reported.
The filing also said that since the end of the COVID-19 pandemic, people have been going out and traveling more, not spending their money on items for the home, according to Reuters.
The Instant Pot pressure cooker launched on Amazon in 2010 and became popular over the past decade, according to Bloomberg.
Instant Brands had more than $500 million in assets and liabilities but has also received $132.5 million in financing from lenders.
The company has more than 1,800 employees, with more than half of them members of a union, Reuters reported.
Only the U.S.-based portion of the company was part of the filing. The parts of the company outside of the U.S. are not.
Instant Brand also came under fire earlier this year when it was found that its Pyrex glass measuring cups were not made in the U.S., despite being labeled as such. They were actually imported from China, Reuters reported. The company was fined and agreed to change how it markets its items.
Cornell Capital, a private equity firm, owns Instant Brands, Bloomberg reported.
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