Tupperware Brands Corp. and some subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, September 17. In a statement, the food container company revealed that dwindling sales in recent years caused the move.
Last year, Tupperware warned of “substantial doubt” if they’ll be able to continue operations considering their financial situation.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” President and CEO Laurie Ann Goldman said.
“As a result, we explored numerous strategic options and determined this is the best path forward,” Goldman added.
According to bankruptcy filings in the US Bankruptcy Court for the District of Delaware, Tupperware listed $500 million—$1 billion in estimated assets and $1 billion—$10 billion in estimated liabilities.
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The company will seek court approval for a sale process to protect its brand and advance its transformation into a “digital-first, technology-led company.”
Tupperware will also request permission to continue operating during bankruptcy proceedings, allowing it to pay employees and suppliers.
“We plan to keep serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
Tupperware, known for its colorful plastic containers, was founded in 1946 by Earl Tupper. He found inspiration after making molds at a plastics factory.
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Over time, his invention gained popularity due to its revolutionary airtight seal and even inspired “Tupperware Parties.” It’s an event where friends gather with food and refreshments as a company representative demonstrates the wonders of the beloved plastic container.
Tupperware experienced a brief sales spike during the pandemic. People preferred home cooking, which increased demand for its vibrant containers. However, the spike wasn’t enough to reverse the company’s financial losses.
Moreover, Tupperware has reportedly been trying to improve its financial situation for four years after experiencing a six-quarter sales decline.
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