Tervis Blames Bed, Bath & Beyond Closures for Bankruptcy, Aims to Refocus Brand

Photo byTervis | Writer's Edit

Looks like even the famous Tervis tumblers are feeling the heat of changing times. The North Venice-based company, known for its double-walled cups, has filed for Chapter 11 bankruptcy, citing big changes in the retail world and struggles to keep up with evolving consumer trends. According to the company’s recent filings, this move is all about ensuring Tervis has a future, even as it tries to dig its way out of $32.8 million in debt.

One of the key challenges Tervis has faced over the years? The rise of stainless steel water bottles, like the popular Stanley Quencher. Even though Tervis jumped into the stainless steel market back in 2017, things didn’t go as planned. Their supplier couldn’t keep up with quality expectations, forcing Tervis to end the partnership later that same year. This stumble put them behind competitors who were making waves in the drinkware world.

Interestingly, the closure of all Bed, Bath & Beyond stores in 2023 hit Tervis hard. While the shuttering of Linens 'n Things back in 2008 didn’t affect their sales too much, losing Bed, Bath & Beyond was a different story. The filing mentions that these closures were a significant factor in their current financial struggles.

To make matters worse, brands like Stanley and Owala have soared in popularity. In fact, there were stories of people lining up outside Target stores earlier this year for a shot at buying Stanley tumblers — with some even getting into physical fights over them. Talk about competitive drinkware!

Tervis, however, is pivoting away from trying to compete with these on-the-go giants. Instead, they’re going back to their roots. The company is now focusing on “at-home” occasions, with plans to launch a new sub-brand called TervisHome and expand into melamine products by 2025. Their vision moving forward is to embrace their identity as a family-owned, local brand known for products suited to everyday casual dining. Tervis says its strong relationships with vendors and its family-oriented culture will be key in their comeback.

Despite the setbacks, Tervis saw a bit of a bright spot during the pandemic. Their online sales surged, making up 21% of global retail sales in 2021, up from 15% in 2019. But the company admits that this boost didn’t last. With people spending more on experiences and less on products, especially in brick-and-mortar stores, Tervis’s e-commerce sales began to decline in recent years.

Looking ahead, the company is determined to stay in the game, shifting gears to focus on what they do best: bringing people together with classic, durable products. Whether or not this strategy will bring Tervis back to full strength remains to be seen, but the brand seems committed to adapting and surviving.

It’s a tough time for many in retail, and Tervis is hoping this bankruptcy will be the reset they need to thrive again.