On Wednesday, 18th September, Tupperware, a well-known American company that manufactures and internationally distributes storage as well as serving containers, announced that it has filed for chapter 11 bankruptcy protection, after a year-long struggle.
Tupperware was founded in 1942 and since then it has been dominating the world of food storage. This American company was founded by Earl Tupper. In 1946, he had introduced the first bell-shaped container to the public. This company provides storage and serving containers for the kitchen and home use.
The goods of this American brand were seen in almost all the American homes and eventually, it became a famous brand among other food storage brands.
Why has Tupperware gone bankrupt?
Tupperware Brands Corporation, an iconic global brand, has filed for Chapter 11 Bankruptcy protection after facing 1-year struggle of declining sales and rising competition in the market. In June 2024, it planned to lay off almost around 150 employees and close its US factory. The company is currently in huge debt as its sales have drastically declined and the competition in the market has mounted.
Before filling the Bankruptcy protection, the American company had done months-long negotiations with its lenders. They negotiated about the ways to handle over 700 million dollars in loans. The creditors even gave some time to the company to manage the debt but unfortunately, their business kept declining.
Tupperware filed for bankruptcy protection in Delaware and listed assets of between 500 million dollars to 1 billion dollars and liabilities from 1 billion dollars to 10 billion dollars. Tupperware will ask for the court’s permission to allow them to continue operating during the proceedings.
President and CEO of Tupperware, Laurie Ann Goldman has said, “Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family. We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward. his 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,” Laurie Ann Goldman further added.