Tervis Tumbler Co. is reorganizing under a Chapter 11 bankruptcy filing and laying off 60 employees.
The company, based in North Venice, Fla., was founded in 1946. The family-owned brand is on its third generation of owners. Tervis' main products are durable drinkware that come with a lifetime guarantee. The company has more than 50 licensing deals.
According to the worker adjustment and retraining notification (WARN) filed by the company, layoffs will start on Nov. 11 and go through Dec. 20. Tervis will continue to employ 131 people.
The company will continue in business and is adjusting its operations and financial obligations.
"Bankruptcy is not an end for Tervis but rather a means of ensuring its continued existence and operational success in the decades to come," said Tervis' filing with the U.S. Bankruptcy court.
Many other brands dominate the stainless steel drinkware industry such as Yeti and Hydroflask. The sector saw major growth in demand over the past 10 years. Tervis also joined the stainless steel sector in 2017, but found it hard to keep up with the larger brands and compete with the market pricing.
In 2021, Tervis saw a significant increase in e-commerce sales, which was 21 percent of global sales, which was a 6 percent increase compared to 2019. This led to the company's decision to invest more in direct-to-consumer business by outsourcing manufacturing and start a distribution center to supply e-commerce sales in less than a year.
This initial plan saw an 11 percent increase in sales, but that level has since declined. Retailer Bed Bath and Beyond's closure also contributed to declining sales.
Earlier this year. Tervis moved the focus of the company more towards home occasions rather than on-the-go occasions. It has developed the new sub brand, TervisHome and a new product category, Classic Drinkware Portfolio.
The restructuring will also allow the company to eliminate negative operations and focus on the core of the business.