Another popular retail brand files for Chapter 11 bankruptcy
The retail product manufacturer files Chapter 11 bankruptcy to reorganize its business.
Consumers can change into disappointed and distraught whenever their favorite products disappear from store shelves.
One amongst essentially the most well known products that disappeared, but simplest temporarily, used to be Hostess Brands, which in 2012 filed financial disaster, ceased operations and liquidated.
Related: Bankrupt Home Depot rival forced to liquidate remaining stores
The corporate, which manufactured Twinkies, Ho Hos and Ding Dongs disappeared from stores for many months until J.M. Smucker in September 2012 agreed to purchase the defunct company for roughly $5.6 billion.
Another manufacturer of iconic products, Basic Fun!, on June 28 filed for Chapter 11 financial disaster to restructure its business, but may no longer put off any of its well known products from stores.
Among Basic Fun! products are classic toys, equivalent to Tonka, Lincoln Logs, Tinker Toys, Fisher Price Classics, Care Bears, Lite Brite, Playhut, Uncle Milton, Mash'ems and Littlest Pet Shop.
Basic Fun! began having severe financial problems after Toys "R" Us filed financial disaster and liquidated in 2018. The Covid-19 pandemic exacerbated the corporate's distress.
Related: Mattress Firm rival files for Chapter 11 financial disaster
A mix financial distress factors have led bargain of other retail brands to file for financial disaster protection it may possibly well well be because Covid-19 pandemic. High inflation, rising interest rates, a decline in consumer discretionary spending and tight retail competition are one of a few head reasons retail businesses are facing financial hardship. Aaron Davidson/Getty Images
Tervis files Chapter 11 financial disaster to reorganize
Well known drinkware maker Tervis Tumbler Co. on Sept. 5 filed for Chapter 11 financial disaster in the U.S. Financial disaster Court for the Middle District of Florida to reorganize its business.
The debtor listed $10 million to $50 million in liabilities and assets in its petition.
More financial disaster stories:
- Another well known ice cream brand files for Chapter 11 financial disaster
- Well known burger chain faces likely Chapter 11 financial disaster
- Huge shipping company files Chapter 11 financial disaster to liquidate
Tervis cited a combination of a sharp decline in e-commerce sales, long-lasting drop in consumer discretionary spending, rising operating expenses, unprofitable retail locations, and a lingering lawsuit from 2018 for filing its petition, Business Observer reported.
The Venice, Fla., debtor also suffered from an incredible industry disruption when in 2014 and 2015 chrome steel drinkware brands, equivalent to Hydroflask, Yeti and Swell, entered the drinkware market.
Tervis entered the chrome steel drinkware market in 2016, but reportedly had difficulty competing with larger brands on price at retail locations and didn't meet consumer expectations on product quality regarding chipping and peeling until January 2023.
Tervis, which is the sector's first permanently sealed, double-walled, insulated tumbler, used to be founded in 1946 by Frank Cotter and G. Howlett Davis, who combined the last three letters of their last names to create the name of their company, per its web site online.
Entrepreneur John C. Winslow purchased the rights to Tervis drinkware in 1967 and commenced marketing it at marinas, golf courses and more than some of retail stores and kept expanding. The corporate is now a 1/3-generation family-owned and operated company.
A significant feature of Tervis customized cup is the licensing of quite various brands that include Disney; Harry Potter; Marvel; DC; Peanuts; Sesame Street; NFL, NBA, MLB and NHL sports teams; and collegiate logos. The corporate currently maintains 50 licensing agreements for its tumblers.
The corporate also operates eight Tervis retail stores in four states. The stores shall be found in Ellenton, Key West, Osprey, Panama City Beach and St. Augustine, Fla.; Frankenmuth, Mich.; Myrtle Beach, S.C.; and Pigeon Forge, Tenn.
Tervis products are also reachable at more than some of outlets, including Walmart, Target, Kohl's, Home Depot and quite various sports merchandise stores.
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