Instant Brands, known for Instant Pot and Pyrex, files for bankruptcy

The Ottawa-founded company behind kitchen staples, including the Instant Pot and Pyrex, has filed for bankruptcy in Canada and the U.S.

In a news release on June 12, Instant Brands announced that it has “initiated a voluntary court-supervised Chapter 11 process.”

“After successfully navigating the COVID-19 pandemic and the global supply chain crisis, we continue to face additional global macroeconomic and geopolitical challenges that have affected our business,” President and CEO Ben Gadbois said in the release.

“In particular, tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable. In recent months, we have been working closely with all of our financial stakeholders to position [Instant Brands] for its next phase of success.”

According to news outlets, including CBC News, the company revealed in court filings that it’s grappling with more than $500-million US worth of debt.

In the first three months of 2023, Instant Brands only generated operating cash flows of approximately $17.9-million US.

The company claims on its website that it employs a global workforce of more than 2,400 people. Over 25 staff members are located in Canada, according to LinkedIn.

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Severance pay for Instant Brands staff

In Canada, non-unionized workers at Instant Brands are owed a full severance package from their employer when they lose their job.

This includes full-time, part-time, or hourly employees — as well as independent contractors.

Severance for non-unionized workers can be as much as 24 month’s pay. The amount of compensation you are entitled to is calculated using a variety of factors, including:

• Age
• Length of service
• Position at the company
• Ability to find new work

The experienced employment law team at Samfiru Tumarkin LLP has secured fair and complete termination packages for tens of thousands of non-unionized individuals in Ontario, Alberta, and B.C. since 2007.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.

Non-unionized workers in Canada are still entitled to appropriate severance pay if their employer decides to close the business permanently.

However, the situation changes if the company declares bankruptcy or creditor protection through the Company Creditor Arrangement Act (CCAA).

When employers file for bankruptcy protection through the CCAA, it’s very unlikely that staff will see much, if any, severance pay in the event that they are fired or let go.

The reason for this is that secured creditors, like banks, are at the front of the line for any funds generated through the bankruptcy and restructuring process, while unsecured creditors, such as employees, are at the back.

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