That is true, but some key facts from the article are: In court filings, the company says it generated operating cash flows of just $17.9 million US in the first three months of the year. That relatively meagre figure is a sharp contrast to the more than $500 million US worth of debt on its books. So, if they have similar revenues for the rest of the year this means they will make 71.6 Million in sales and even if there is a bump in the second half of the year due to higher sales around Black FRiday, Christmas and so on, they are paying almost 50 Million in interest given the current interest rates.
The company says it has lined up more than $133 million in funding to cover expenses such as employee salaries and benefits, pension obligations, paying suppliers and other obligations while it tries to restructure. That means whatever is left after paying interest will not go too far to cover salaries and operating costs. S&P downgraded the company last week and warned that "absent external funding or debt relief, we anticipate Instant Brands will face a liquidity shortfall over the near term." Snyder says the company is trying to buy time to come up with a solution that will let them continue to operate, but "it's really up to the creditor at this point because of the size of the debt, whether they are going to let them continue to fund losses." "They took on too much debt and now you have a company that was moderately profitable now underwater because of the debt load," he said. "That's a tale as old as time." He says he wouldn't be surprised to see the company be forced to liquidate. Market research firm Circana says the product category of "electronic multicooker devices" which is dominated by Instant Pot, hit $758 million worldwide in 2020. By 2022, industry-wide sales had plunged 50 per cent to $344 million. This last bit about the 50% drop in sales for these types of devices in just 2 years to me is a pretty clear trend which shows the short-lived nature of such devices, in some ways such companies live and die through Amazon wjhere the majority of the product is sold and where the hipe about it is generated. From: viphone@googlegroups.com <viphone@googlegroups.com> On Behalf Of Mary Otten Sent: Wednesday, June 14, 2023 9:18 AM To: viphone@googlegroups.com Subject: Re: Enjoy your Instant Pot while it lasts - the company has filed for bankruptsy It’s important to recognize the difference between the two different kinds of bankruptcy filings. Instant filed under Chapter 11, which means they are trying to re-organize, not just go out of business. Apparently they do have a financing group ready to infuse more money into their business, but it Hass to be approved by whoever it is that is in charge of bankruptcies. So it may still be around after re-organization, or it could go away via the chapter 7 bankruptcy, in which case, it is in fact gone. Sent from my iPhone On Jun 13, 2023, at 11:40 PM, Sieghard Weitzel <siegh...@live.ca<mailto:siegh...@live.ca>> wrote: I know many on the list bought into the Instant Pot craze about 4 or 5 years ago, I kept considering it and was waitiand waiting for the new Smart model (not the Bluetooth one) to come out and to be available for a reasonable price here in Canada. At one point it was somewhat reasonable, but I thought it would go on sale again and then it didn't and then it seemed to disappear. Now I just came across an article on CBC News about Instant Brands which apparently came into existance when Instant Pot and Corelle Brands merged, another rwell-known brand which is part of that company's port folio is Pyrex cookware. In the article it says that Instant Brands has gone into Chapter 11 bankruptsy protection and that the assets of the company may be liquidated. Of course it is quite possible that maybe some other outfit picks up some or all of the pieces although I believe the era of the Instant Pot and similar all-in-one cooking appliances has passed and was nothing more than a fad. In the end I am glad I didn't get one of these gadgets as I actually do like cooking according to more traditional methods making things from scratch and with local ingredients including those we grow in our own garden in the summer and fall. . For anybody who is interested, here is a link to the article: Instant Brands, maker of Instant Pot and Pyrex cookware, files for bankruptcy | CBC News<https://www.cbc.ca/news/business/instant-brands-bankruptcy-1.6874487> Best regards, Sieghard -- The following information is important for all members of the V iPhone list. If you have any questions or concerns about the running of this list, or if you feel that a member's post is inappropriate, please contact the owners or moderators directly rather than posting on the list itself. Your V iPhone list moderator is Mark Taylor. Mark can be reached at: mk...@ucla.edu<mailto:mk...@ucla.edu>. Your list owner is Cara Quinn - you can reach Cara at caraqu...@caraquinn.com<mailto:caraqu...@caraquinn.com> The archives for this list can be searched at: http://www.mail-archive.com/viphone@googlegroups.com/ --- You received this message because you are subscribed to the Google Groups "VIPhone" group. 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