Instant Pot Maker Suffers from Supply Chain Pressures
Instant Brands, the maker of the popular Instant Pot cooker and Pyrex glassware, has filed for Chapter 11 bankruptcy protection due to ongoing financial struggles caused by supply chain pressures. The company faced high costs in maintaining its supply chain even as demand for its products fluctuated during the pandemic. Instant Brands is seeking to restructure its debt, which includes significant amounts owed to manufacturers in China and various logistics providers.
The company cited unprecedented liquidity challenges, tightened credit terms with suppliers, rising interest rates, inflation, and distribution channel shifts as key factors contributing to its financial difficulties. Retailers and manufacturers, especially smaller operators, continue to face financial consequences from the pandemic-related turmoil, including surging international shipping costs. Instant Brands experienced a supply chain perfect storm in the second half of 2021, with port closures, shipping backlogs, and soaring freight costs disrupting their operations.
A California-based freight forwarder, Boateng Logistics, has filed for bankruptcy liquidation, leaving trucking, logistics, and factoring companies owed millions.