After Tupperware, it is another major player in home products and appliances that is facing significant financial difficulties. US company Instant Brands recently announced that it and some of its subsidiaries had “initiated voluntary receivership proceedings” in the US and Canada by filing for bankruptcy protection.
A provision that gives it “the time and flexibility to continue ongoing discussions with all financial stakeholders to find a consensual solution that strengthens the company’s financial situation.”
Instant Brands markets its items under world famous brand names such as Pyrex, Corelle, Snapware and Visions glass plates.
Immediate debt of $40 million
If the company took advantage of the confinements to record a rebound in its sales during the Covid pandemic, it is now suffering from the current economic context according to its CEO Ben Gadbois: “After having successfully overcome the Covid-19 pandemic and the supply global chain crisis, we continue to face other global macroeconomic and geopolitical issues that have affected our business.”
A context that affects the financing capacity of Instant Brands, which owes close to $40 million to its five main creditors according to the RetailDive site, which relies on judicial sources.
No impact on the activity of the Châteauroux plant
However, the company has managed to secure $132.5 million in new financing from its current lenders, which should allow it to continue to operate “worldwide” through the restructuring process, for which a specially appointed director has been appointed. In addition, the court guaranteed him “the continuation of the payment of wages and benefits without interruption” during the proceedings.
With about 2,500 employees worldwide, the company specifies that only its US and Canadian entities are affected by the procedure: “Instant Brands continues its activities as usual in Asia, the United Kingdom, Europe, the Middle East, Australia and New Zealand . “
In France, the company La Maison Française du Verre operates the Pyrex brand under license. He makes the famous dishes at his factory in Châteauroux. A site that should therefore not, for the moment, suffer the consequences of the financial difficulties of the American parent company.
Source: BFM TV
