June Instant Brands announces it has filed for bankruptcy protection
due to a number of factors Instant Brands President and CEO Ben Gadbois said in a letter to the brand, After successfully surviving the COVID-19 pandemic and the global supply chain crisis, We continue to face additional global macroeconomic and geopolitical challenges that affect our business. The company found itself in this position
due to tighter credit conditions and higher interest rates affecting "liquidity levels", which resulted in an unstable capital structure. In a bankruptcy filing in Texas, Instant Brands listed assets and liabilities worth about $1 billion (C $1.3 billion),
Bloomberg reported.
The company expects to raise $132.5 million.
Not only in the United States, but also in Canada under the Corporate Creditors Arrangement Act (CCAA).
Instant Brands said it will continue to operate pending a court-supervised process. The company detailed its restructuring plan online and said it would continue to serve retail partners, work with vendors and suppliers, pay employees and provide benefits.