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,” Tupperware’s CEO Laurie Goldman said in a press release.
“As a result, we explored numerous strategic options and determined this is the best path forward. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders.”
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 US$1 billion in estimated assets and US$1 billion to US$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 and 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.
The company’s roots date back to 1946, when chemist Earl Tupper “had a spark of inspiration while creating moulds 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.
From: channelnewsasia
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