This has been a year filled with several store closures and announcements of bankruptcy. Another Florida company has added its name to 2024’s growing list.
Venice-based Tervis, a national drinkware company founded in 1946, announced last week that it filed for Chapter 11 bankruptcy ahead of a company-wide reorganization for future growth.
What is Chapter 11 bankruptcy?
Tervis’ bankruptcy application doesn’t mean it’s ceasing operations. According to the United States Courts, Chapter 11 bankruptcy is frequently referred to as a “reorganization” bankruptcy.
“Usually, the debtor remains ‘in possession,’ has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money,” the website states. “A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.”
Why is Tervis filing for Chapter 11 Bankruptcy? Company says layoffs are expected
A variety of stainless steel tumblers are manufactured at Tervis in Venice.
According to prior Sarasota Herald-Tribune reports, the company cited a “disruption of the market” and a drop in retail spending as the catalyst, noting that other drinkware companies like Yeti and Stanley have skyrocketed in recent years.
Rogan Donelly, grandson of the company founder, said the company filed the bankruptcy application to prepare for impending changes.
“Tervis has been around for 78 years and has weathered various economies by adjusting to market conditions,” he said. “This difficult business decision was one that we made in order to preserve the company’s legacy and better the company for the future.”
This comes almost a year after the company tapped Hosana Fieber as its new CEO. Tervis owes its primary creditor, the southeastern U.S.-based United Community Bank, almost $5 million. The company filed a motion for permission to use its estimated $7.85 million in cash collateral to continue its operations.
Tervis files for bankruptcy: Venice-based Tervis tumbler files for bankruptcy, layoffs expected
As a private company, Tervis’ exact assets and revenues aren’t available, but according to bankruptcy documents obtained by the Herald-Tribune, the company’s current assets fall between $10 million and $50 million. Its liabilities are listed in the same range.
Layoffs are also expected, the company said, though it’s unclear how many workers they will impact and when they will take place.
Where is Tervis headquarters located?
Tumblers are manufactured at Tervis in Venice.
The company’s principal address is still listed at 201 Triple Diamond Blvd. in North Venice, through property records report Tervis sold the 12.5-acre plot to 201 Triple Diamond Holdings LLC last August for almost $15.5 million.
Story continues
Michigan businessmen Frank Cotter and G. Howlett Davis founded the company in 1946. In the 1960s, entrepreneur John C. “Jake” Winslow bought the company and moved the factory to U.S. 41 in Sarasota County’s Osprey, which continued to operate a store well into the 21st century.
Norbert Donelly, son-in-law of Winslow, took over the family business in the late 1980s and grew the factory from the 12 employees it had then to the roughly 700 it had as recently as 2017, at a site visible from Interstate 75, with a capacity to produce up to 90,000 cups a day.
As of 2024, Tervis offers a range of drinkware products, including its OG tumbler, water bottles, and mugs. They also offer customized products and have collaborations with several brands, such as Disney, Marvel and the NFL.
Is Tervis still made in the USA?
Stainless steel tumblers are manufactured at Tervis in Venice.
According to American Made, Tervis products are split into two — its classic insulated products made from plastic are all made in the USA while its products made from stainless steel are all made in China.
The website notes Tervis is transparent about this on their product pages, saying the stainless steel products are listed as “made in China, supplied from Venice, Florida,” with a couple of these products (tumblers and wine glasses) being made in China, printed in Florida.
Other Florida-based companies that filed for bankruptcy, closed locations in last year
This year has seen several companies close stores and/or file for bankruptcy, including Big Lots, Best Buy and Macys. Here’s all the Florida-base companies that saw closures this year:
Tijuana Flats: The Orlando-based Tex-Mex restaurant Tijuana Flats filed for Chapter 11 bankruptcy protection in April and was purchased by Flatheads, LLC. The company announced it was closing underperforming locations, with nearly 20 locations in Florida closing.
Red Lobster: The Lakeland-based seafood chain filed for Chapter 11 Bankruptcy in May and have closed over 100 restaurants across country, including 20 in Florida as of September. It will be acquired by RL Investor Holdings LLC, a newly formed entity organized and controlled by Fortress Investment Group LLC.
Hooters: The Clearwater-based chain made the decision to close a select number of underperforming stores, which included four in Florida. However, the chain will be opening up three new locations near The Villages in Central Florida.
Buca Di Beppo: Orlando-based Italian restaurant chain filed for Chapter 11 Bankruptcy after closing nearly 20% of its locations in the last month, citing rising costs and hiring difficulty. The nine locations in Florida have been whittled down to three, in Orlando, Celebration/Kissimmee, and Davie.
It has also been reported that BurgerFi, the fast-casual burger chain with roots in South Florida’s Lauderdale-by-the-Sea, might be filing for bankruptcy soon.
According to the USA TODAY Network’s Palm Beach Post, a recent filing in August detailed that the company not only took a hit in the quarter that just ended, but it also expects to report a loss of $18.4 million for the current quarter due to “lower operating income, higher general and administrative expenses, and higher restructuring costs.”
The company said in the filing that it may seek bankruptcy protection if it does not receive enough help from its senior lender and “additional sufficient liquidity” from other potential providers or by selling its assets. As of September, there is no update on what this means for its 100+ locations nationally.
Contributing: C. A. Bridges, USA TODAY Network-Florida
This article originally appeared on Fort Myers News-Press: Tervis adds its name to companies filing for bankruptcy in 2024
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Publish date : 2024-09-10 05:53:00
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