Tupperware, maker of iconic food containers, has filed for bankruptcy after years of dwindling sales.
The New York-listed company’s president and CEO Laurie Ann Goldman said that the move was “the best path forward” for the firm.Tupperware will seek approval to continue operations as the bankruptcy process continues.Demand has dipped in recent years as the company’s products lost popularity with consumers, and a move to improve distribution failed.The company was founded in 1942 by Earl Tupper, a chemist, who designed airtight seals to help families save money in the hard economic times that followed World War II. The launch of its products in 1942 begun an entire sub-ecosystem, as it was the first practical solution to the problem of food storage. It also had its critics from the onset, who argued that it was a gendered product.
“Tupperware Brands Corporation (“Tupperware” or the “Company”) (NYSE: TUP), an iconic global brand, today announced that the Company and certain of its subsidiaries have voluntarily initiated Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware (the “Court”),” the company said in a statement.
If approved, the company will continue operating as it restructures its finances and its business model. The company is facing a significant debt load of more than $700mn and added that its finances had been “severely impacted by the challenging macroeconomic environment.” It is also likely a result of the overall war on plastic, as consumers have become more aware about environmental issues.
“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,” Goldman said.
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