Founded in 2009, Instant Brands Inc. is a household name in the kitchen appliance industry. With a mission to provide convenience to cooking, the company has gained widespread recognition for its innovative products, particularly the Instant Pot.
Instant Brands recently filed for Chapter 11 bankruptcy, signaling the company’s intent to undergo a reorganization rather than liquidation. This decision can be attributed to a combination of factors, including strict credit conditions and higher interest rates, according to CNN.
To support its restructuring, the company has secured additional financing of $132.5 million from investors. This infusion of capital is expected to facilitate the bankruptcy process and provide the company with the necessary resources to navigate its reorganization.
While the bankruptcy filing may raise concerns among consumers, it is important to note that Chapter 11 bankruptcy primarily focuses on restructuring and re-optimizing business assets, and operations rather than leading to immediate closure.