Instant Brands filed for Chapter 11 bankruptcy protection on Monday. Photo: Andrew Harrer/Bloomberg 'Sponsors Are Getting More Aggressive' as Private Equity Turns to Bankruptcy to Increase Yields
In the Instant Brands bankruptcy and others, private equity firms are using high interest rates and supply-chain disruptions as cover to clean up their balance sheets, bankruptcy lawyers said.
June 16, 2023 at 10:57 AM
5 minute read
As a debtor, Instant Brands is emblematic of the financial distress that permeates the retail sector. The maker of the Instant Pot filed for Chapter 11 on Monday after initially benefiting from the rise of consumer spending during the pandemic, but ultimately succumbing to supply-chain issues, inflation, high interest rates and shortened payment terms from suppliers and vendors, chief restructuring officer Adam Hollerbach of AlixPartners declared in a court filing.
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