Tupperware Brands Corporation and some of its subsidiaries have filed for Chapter 11 bankruptcy protection.
The once-iconic container maker has given in to dwindling demand and mounting financial losses. Its struggles resumed after a short-lived pandemic boost, when increased home cooking temporarily drove demand for its colourful, airtight plastic containers.
However, a post-pandemic jump in terms of raw materials such as plastic resin, along with shipping, have further dented Tupperware’s bottom line. Just last year, the company warned of “substantial doubt” about its ability to continue operating in light of its poor financial position. By June, the company announced plans to close its U.S. factory and lay off 150 employees in the process.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Chief Executive Officer Laurie Goldman stated in a press release.
“As a result, we explored numerous strategic options and determined this is the best path forward,” Goldman added.
Tupperware has said that it would seek court approval after breaching the terms of its debt and bringing in legal and financial advisers, according to Bloomberg News.
The company listed $500 million-$1 billion in estimated assets and $1 billion-$10 billion in estimated liabilities, according to bankruptcy filings in the US Bankruptcy Court for the District of Delaware. These also showed the number of creditors to be between 50,001-100,000.
Tupperware will seek Court approval for a sale process for the business to protect its brand as well as to continue operating during the bankruptcy proceedings.
