VENICE, Fla. (WWSB) - Tervis, the nationally loved and family-owned drinkware company founded in 1946, has announced it is filing for Chapter 11 bankruptcy in order to reorganize for future growth.
Company executives noted several factors leading to the business decision, including the on-the-go and stainless drinkware disruption of the market, a burdensome lawsuit filed against the firm by a previous supplier in 2017 that continues today, the worldwide pandemic in 2021 and a dramatic decrease in retail spending over the past five years.
“These market trends are ones that Tervis will make adjustments to in future business planning, but have drastically affected current operations,” said Hosana Fieber, chief executive officer of Tervis. “Additionally, in early 2024, Tervis made the difficult decision to close its distribution facility and work to sublease the property, which has proven difficult, and due to all of these factors, we must make this business decision in order to move forward as a company.”
The company does expect layoffs to take place, while keeping a core group of employees in every department during the transition into reorganization.
“One thing is certain, and that is that our company needs people, and we intend to keep as many employees as we can in each department to continue our operations while we undertake this reorganization with the goal of building back even stronger,” said Fieber.
“Tervis has been around for 78 years and has weathered various economies by adjusting to market conditions. This difficult business decision was one that we made in order to preserve the company’s legacy and better the company for the future to ensure its continued existence and operational success in the decades to come,” said Rogan Donelly, chairman of the board for Tervis.
Executive leaders from the drinkware firm have already started evolving its business strategy to return to its legacy and focus on product for home occasions versus on-the-go occasions.
This new business strategy has led to the development of a new sub-brand, TervisHome, and a new product category launch of melamine to accompany the Classic Drinkware Portfolio, which ranks within the Top 10 of plastic and acrylic drinkware.
“Going forward, Tervis intends to focus on its core foundation as a classic, locally invested, family-owned brand that provides products for everyday casual dining occasions,” said Fieber. “The brand has unique, long-standing and close relationships with vendors by harboring a consistent family culture, and our team is deeply committed to bringing Tervis back even stronger than it was before and leaning on our core roots and strong legacy to make that happen.”
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