TUPPERWARE Brands and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday (Sep 17), giving in to dwindling demand for its once-iconic food storage containers and mounting financial losses.
The company’s struggles resumed after a short-lived pandemic boost, when increased home cooking briefly drove demand for its colourful, airtight plastic containers. A post-pandemic jump in costs of raw materials such as plastic resin, as well as labour and freight, further dented Tupperware margins.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” chief executive officer Laurie Goldman said.
Tupperware has been planning to file for bankruptcy protection after breaching the terms of its debt and enlisting legal and financial advisers, Bloomberg reported on Monday.
The company listed US$500 million to $1 billion in estimated assets and US$1 billion to $10 billion in estimated liabilities, according to bankruptcy filings in the US Bankruptcy Court for the District of Delaware, which showed the number of creditors to be between 50,001 to 100,000.
Tupperware has been trying to turn its business around for about four years now after reporting a fall in sales for six consecutive quarters since the third quarter of 2021, as sticky inflation continued to dissuade its low and mid-income consumer base.
In 2023, the company finalised an agreement with its lenders to restructure its debt obligations, and signed investment bank Moelis & Co to help explore strategic alternatives. REUTERS
