Tupperware, an American company that manufactures, and internationally distributes preparation, storage, and serving containers for the kitchen and home, has filed for Chapter 11 bankruptcy protection after years of financial troubles.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Laurie Ann Goldman, president and CEO of Tupperware Brands Corporation, said in a statement on Tuesday.

However, the company plans to continue operating and will seek court approval for a sale, it said on Tuesday. 

The company is seeking bankruptcy protection amid growing struggles to revitalize its business. Tupperware sales growth improved during the early days of the COVID-19 pandemic, but overall sales have been in steady decline since 2018 due to rising competition. Financial troubles have continued to pile up for the Orlando, Florida, company.

Doubts around Tupperware's future have floated around for some time. Last year, the company sought additional financing as it warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange. Shares have fallen 75% this year and closed Tuesday at about 50 cents apiece.

Tupperware experienced explosive growth in the mid-20th century with the rise of Tupperware parties, first held in 1948. Tupperware parties gave many women a chance to run their own businesses out of their homes, selling the products within social circles.

The system worked so well that Tupperware removed its products from stores three years later. Social changes, namely fewer dinners made from scratch and more nights spent dining out, took a toll on Tupperware sales.

With inputs from agencies