Instant Pot Manufacturer Seeks Bankruptcy Protection
Despite the Instant Pot’s status as a crucial kitchen appliance over the last ten years, its parent company has faced financial difficulties. Instant Brands has filed for Chapter 11 bankruptcy in the US, citing global “macroeconomic and geopolitical challenges,” such as increased interest rates and stricter credit. Although the company claims to have weathered the pandemic and subsequent supply chain issues, these recent challenges proved insurmountable.
Instant Brands still expects to have products on shelves, including Instant Pot, as well as sister brands such as Corelle, CorningWare and Pyrex. It was also promised $132.5 million in financing to pay creditors while it works through the bankruptcy process. The court still needs to approve the funding.
The Instant Pot series was first launched in 2010 with a simple strategy: it combined a pressure cooker and many other functions (such as frying and steaming) in one device. It’s especially appealing if you want a quick meal without a microwave. Despite the lack of advertising, it developed a cult following and became synonymous with modern kitchens. This led to growing demand – the collection dominated Amazon’s Prime Day sales for years starting in 2016.
This is not the end of Instant Brands. Like Chapter 11 filings for other companies, it’s an opportunity for a company to get its finances in order and (ideally) ensure its long-term health. However, this is a reminder that success in technology doesn’t last forever, even for kitchen gadgets.
