A popular drinkware maker now files an unexpected bankruptcy after listing $10 million to $50 million in liabilities and assets in its petition.
Tervis Tumbler Co., a well-known drinkware manufacturer, filed for Chapter 11 bankruptcy on September 5 in the U.S. Bankruptcy Court for the Middle District of Florida.
The company aims to reorganize its business due to several challenges, including a significant drop in e-commerce sales, reduced consumer spending, rising operational costs, unprofitable retail locations, and a longstanding lawsuit from 2018.
Based in Venice, Florida, Tervis has faced considerable industry competition since stainless steel drinkware brands like Hydroflask, Yeti, and Swell entered the market in 2014 and 2015.
Although Tervis launched its own stainless steel products in 2016, it struggled to compete on price and did not meet consumer quality expectations regarding chipping and peeling until January 2023, per TheStreet.
Founded in 1946 by Frank Cotter and G. Howlett Davis, Tervis is known for creating the first permanently sealed, double-walled insulated tumbler.
The name “Tervis” is derived from the last three letters of the founders’ surnames. In 1967, entrepreneur John C. Winslow acquired the rights to Tervis and began promoting the drinkware at marinas, golf courses, and retail outlets, helping expand the brand.
Tervis is notable for its customizable tumblers, featuring licensed designs from various brands, including Disney, Harry Potter, Marvel, and major sports leagues.
The company currently holds 50 licensing agreements and operates eight retail stores across four states: Florida, Michigan, South Carolina, and Tennessee. Tervis products are also available at major retailers such as Walmart, Target, and Kohl’s.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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