Instant Brands, the maker of kitchen appliances known for its Instant Pot cooker, filed for bankruptcy Monday after succumbing to financial headwinds made worse as consumers slowed their discretionary spending to cope with inflation.
The Illinois-based home appliance maker filed for chapter 11 in the U.S. Bankruptcy Court in Houston, listing more than $500 million in both assets and liabilities. Private-equity firm Cornell Capital bought the company in 2019 and combined it with Corelle Brands, another kitchenware company.
The company’s net sales decreased 21.9% in the first quarter this year compared with the same period in 2022, the seventh consecutive quarter of declining year-over-year sales, S&P Global said in a ratings downgrade of Instant Brands last week. The company ended March with roughly $95 million in liquidity and the business hasn’t been generating cash, according to the ratings report.
Instant Brands was founded in 2009 by Robert Wang, Yi Quin and three other partners in Canada before it was sold to Cornell Capital a decade later.
Original link (paywalled): https://www.wsj.com/articles/instant-pots-slower-sales-tip-gadget-maker-into-bankruptcy-1ef2c7d1
Found via Twitter: https://twitter.com/tomgara/status/1668611912458813444
It's the pinnacle of private equity brain to take Instant Pot, one of the the simplest, most no-drama businesses of all time, and somehow turn it into a $500 million bankruptcy