This massive retailer now survives chapter 11 bankruptcy as a court in Texas approves its plan to restructure, sources report.
Instant Brands entered bankruptcy with a plan to be purchased in a two-part transaction by Centre Lane Partners.
Its previous owner, private equity firm Cornell Capital bought the company in 2019.
While it gained fame with the Instant Pot, a modern take on a pressure cooker, it also owns a number of other brands including Corelle, Pyrex, Snapware, CorningWare, Visions, and Chicago Cutlery.
Its signature product spurred its growth, but while the company tried to expand the line with sauce packets and other Instant Pot-branded products, they weren’t needed by consumers, reports TheStreet.
Now, the U.S. Bankruptcy Court for the Southern District of Texas has approved the bankruptcy reorganization plane and the company will soon emerge from the bankruptcy process.
“With the Court’s confirmation, Instant Brands is proceeding with a reorganization of its housewares business and transitioning ownership to the company’s lenders.
The Company will obtain exit financing from its lenders upon consummation of the Plan and anticipates emerging from Chapter 11 by the end of the month,” the company shared in a press release.
Under the plan, the company has already transferred control of its appliance to Center Lane.
That business includes the Instant Pot. Now, with court approval, it’s moving forward with the second transaction.
“We have achieved the goals we set out when we initiated this process. Last November we separated and sold our appliances business, and set that business up for success under new ownership.
For our housewares business, we have continued driving strong performance with market share gain in key categories and secured a bright future for our iconic housewares brands,” CEO Ben Gadbois shared.
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Also Read: This Massive Restaurant Is Now Closing 41 Locations
Other Economy News Today
A bankrupt department store now has a massive liquidation sale up to 70% as it prepares to close its final location in New Jersey.
Sears is closing its final location in New Jersey on Sunday, March 3, reports The-Sun.
The iconic department store chain will soon have just 11 mainland US stores left, the outlet reports.
Situated in Jersey City’s Newport Mall, the closing location is the only Sears store serving New York City residents.
The closest remaining Sears for NYC shoppers will be 227 miles away in Braintree, Massachusetts.
Sears has served as the anchor store for Newport Mall since it opened in 1987.
Rumors have it that Primark, the Irish discount clothing and home store, could take its spot, as per CNN.
Sears announced the closure of its Newport mall store via Facebook.
In a post, it told shoppers that “everything” would be between 25% and 75% off.
Sears and K-Mart are both owned by Transformco.
They have been on a rapid decline since their peak in 2005, at which point they had a combined 3,500 stores.
Under the ownership of billionaire Eddie Lampert, sales have dramatically slowed as Sears has failed to keep up with competitors in the online space.
By 2018, Transformco filed for bankruptcy.
Although the retailer survived bankruptcy with 223 Sears stores in tact, all but 11 in the continental US and one in Puerto Rico have since closed.
Sears is not the only mall staple struggling to survive.
JCPenney is also holding liquidation sales at its anchor store at the Crystal Mall in Waterford, Connecticut.
Since filing for bankruptcy in 2021, it has closed a total of 175 locations.
However, the retailer has vowed to spend $1 billion remodeling its existing stores by the end of 2025 to stop shoppers from turning away.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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