The manufacturer of Instant Pot multicookers and Pyrex glassware has applied for bankruptcy protection, citing liabilities of up to $1 billion (£790 million).
The problems at Instant Brands are attributed to high interest rates and low demand.
More than 2,400 people are employed by the company, which intends to continue running even as it restructures the industry.
It follows a similar warning from Tupperware, another well-known manufacturer of kitchenware, in April that the company might have to file for bankruptcy if it didn't quickly secure new funding.
According to Instant Brands, during the pandemic, sales were strong due to people being confined to their homes.
But according to Ben Gadbois, the company's president and chief executive, "tightening of credit terms and higher interest rates impacted our liquidity levels and made our capital structure unsustainable.".
Adam Hollerbach, who has been named the company's chief restructuring officer as part of the bankruptcy process, stated in a court filing that sales decreased as consumers started to spend less on home goods after the pandemic.
During the restructuring process, the Illinois-based company, which is controlled by private equity firm Cornell Capital, said it will continue to operate with the aid of $132.5m in new financing from its current lenders.
Instant Brands' credit rating was downgraded last week by credit rating agency Sandamp;P Global, which noted that its net sales for the first three months of 2023 had decreased by nearly 22% from the same period in 2012.
People were cutting back on non-essential spending at the time of the announcement as the cost of everything from food to electricity increased.
In order to resolve complaints from the US Federal Trade Commission (FTC) that it misrepresented the origin of some of its Pyrex glass measuring cups by labeling some of them as "Made in USA," Instant Brands agreed in January to pay a fine and alter its marketing strategies.
In addition to the 2010 launch of the Instant Pot and the more than a century-old cookware brand Pyrex, the portfolio of kitchenware brands owned by Instant Brands also includes Corelle, CorningWare, and Snapware.
Tupperware, a US manufacturer of food storage containers, issued a warning in April, stating that it might go out of business if it cannot find new funding right away.
There is "substantial doubt" about the 77-year-old company's ability to continue as a going concern, according to the firm.
Tupperware has been making an effort to reposition itself to a younger audience, but it has been unable to reverse a decline in sales.
