They resist cold, heat and even the microwave: will Pyrex glass dishes withstand economic conditions? The Canadian company Instant Brands, owner of the Pyrex franchise in the United States and Canada, has requested its placement in receivership. The Instant Pot brand of multi-cookers, also marketed by the company, is also at risk.
“After successfully weathering the global supply chain crisis, we continue to face other global macroeconomic and geopolitical challenges that have affected our business,” said Ben Gadbois, CEO of Instant Brands, in a statement released. in June. Under US bankruptcy law, Instant Brands is allowed to continue in business until the court approves its restructuring plan. According to information disclosed by the RetailDive site, the debt contracted by Instant Brands would peak at more than 38 million dollars in total.
However, the management of the company wants to be optimistic. “Instant Brands continues to pursue its purpose: to provide innovative products that deliver incredible culinary experiences to consumers around the world,” the statement read. Instant Brands hopes the $132.5 million in financing from its creditors will allow it to return to growth. This lifeline is primarily intended to ensure the remuneration of some 2,000 Instant Brands employees around the world.
Recognized and acclaimed in the United States, Pyrex and Instant Pot had yet “successfully weathered the COVID-19 pandemic”, according to the company. But the tightening of the credit market, coupled with the rise in interest rates, limited the room for maneuver of Instant Brands. “Tightening credit conditions and rising interest rates have impacted our liquidity levels and rendered our capital structure unsustainable,” the statement said. The sinking of the Canadian company is reminiscent of that of Tupperware, an emblematic brand of plastic container today on the verge of bankruptcy.
Unlike “Tupperware”, Pyrex and Instant Pot products are not, however, threatened with extinction in the short term. The receivership procedure discussed in the press release only concerns entities in the United States and Canada. “Instant Brands is continuing business as usual in Asia, the UK, Europe, the Middle East, Australia and New Zealand,” the company said.
The situation of Instant Brands will also have no consequences in France, since the company does not operate the Pyrex brand in Europe. In France, the Pyrex license is held by the French House of Glass, formerly International Cookware. The famous borosilicate glass items are still manufactured in two factories in Indre, in Châteauroux and Montierchaume. However, this French production is threatened by falling sales and rising energy costs. According to information from France Bleu Berry, a partial unemployment plan is in preparation, probably applicable from September.
