Tupperware Brands files for bankruptcy

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Tupperware

Tupperware Brands and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, the food container firm said in a statement.

The company, known for its trademark food storage containers, has been hit by dwindling sales in recent years.

Last year the New York-listed firm warned of “substantial doubt” about its ability to keep operating in light of its poor financial position.

“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 in a statement announcing the bankruptcy filing.

“As a result, we explored numerous strategic options and determined this is the best path forward,” added Goldman.

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The company said it would seek court approval for a sale process for the business to protect its brand and “further advance Tupperware’s transformation into a digital-first, technology-led company.”

The Orlando, Florida-based firm said it would also seek approval to continue operating during the bankruptcy proceedings and would continue to pay its employees and suppliers.

“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.

The firm’s shares were trading at $0.5099 Monday, well down from $2.55 in December last year.

Tupperware said it had implemented a strategic plan to modernize its operations and drive efficiencies to ignite growth following the appointment of a new management team last year.

“The Company has made significant progress and intends to continue this important transformation work.”

In its filing with the US Bankruptcy Court for the District of Delaware, Tupperware listed assets of between $500 million and $1 billion and liabilities of between $1 billion and $10 billion.

The filing also said it had between 50,000 and 100,000 creditors.

Tupperware, whose name became synonymous with its airtight plastic containers, in recent years lost popularity with consumers and an initiative to gain distribution through big-box chain Target failed to reverse its fortunes.

The company’s roots date to 1946, when chemist Earl Tupper “had a spark of inspiration while creating molds at a plastics factory shortly after the Great Depression,” according to Tupperware’s website.

“If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste.”

Over time, Tupper’s hermetically sealed plastic containers also became associated with “Tupperware Parties,” where friends would gather with food and drink as a company representative demonstrated the items.

Tupperware has been hit by dwindling sales in recent years
Tupperware has been hit by dwindling sales in recent years © SCOTT OLSON / GETTY IMAGES NORTH AMERICA/AFP

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