Tervis filed for Chapter 11 bankruptcy and will lay off a number of employees as the business reorganizes to address shifts in the marketplace.

Leadership at the Osprey-based company cited market trends and ongoing litigation with a former supply as contributing factors. Executives intend to reduce its workforce but will keep a core group of employees in every department as the company evaluates changes to its business model.

“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 Tervis CEO Hosana Fieber in a statement.

A spokesperson for the company said Tervis leaders are still working on a layoff plan, and a timeline is still not available. The Economic Development Corporation of Sarasota County lists Tervis among the county’s top employers. The most recent EDC numbers show the company employing about 350.

But Fieber acknowledged some steps already taken by the company have drastically affected current operations.”

“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,” Fieber said.

Chapter 11 bankruptcy allows corporations to reorganize without liquidating all assets, according to a U.S. Bankruptcy Court basic explainer website.

“In filing a Chapter 11, the debtor presents a plan to creditors which, if accepted by the creditors and approved by the court, will allow the debtor to reorganize personal or business affairs and again become a financially productive individual or business,” the website states.

Business leaders in the area will closely follow the changes at the company, and hope it finds success again soon.

“Tervis is a Venice cornerstone to the economy,” said Kathy Lehner, president and CEO of the Venice Area Chamber of Commerce. “The jobs and community support for so many years have been a staple for the community. We wish them success, and we know they have the ability to restructure and come back even stronger.”

The press release announcing bankruptcy proceedings noted changes in the market since the COVID-19 pandemic, including a major reduction in retail spending over a five-year period. There has also been a greater interest in recent years on home goods, as opposed to on-the-go products. Tervis has already responded to that with development of a TervisHome brand, and its will soon launch a melamine product line to accompany its plastic and acrylic drinkware goods.

“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,” Fieber said. “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.”

Tervis, which created the first sealed, double-walled insulated tumblers in 1946, moved its manufacturing facilities in Florida in 1967.

“Tervis has been around for 78 years and has weathered various economies by adjusting to market conditions,” said Tervis board chair Rogan Donelly in a statement. “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.”