NEW YORK (AP) – Tupperware Brands, the company that revolutionized food storage decades ago, has filed for Chapter 11 protection.
Orlando, Florida-based Tupperware plans to continue operating during the bankruptcy proceedings and will seek court approval for the sale, “in order to protect its unique brand,” the company said earlier this afternoon. Tuesday.
The company is seeking bankruptcy protection amid mounting difficulties in restructuring its business. Tupperware’s sales growth improved some in the early days of the COVID-19 pandemic, but overall sales have been declining since 2018 due to increased competition. And financial problems have continued to pile up the company.
Doubts about Tupperware’s future have been around for a long time. Last year, the company sought additional funding as it warned investors about its ability to remain in business and the risk of being delisted from the New York Stock Exchange.
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The company received an additional notice of non-compliance from the NYSE for failing to file its annual results with the Securities and Exchange Commission earlier this year. And Tupperware had continued to raise concerns about its ability to stay afloat in recent months, with an August storage report pointing to “significant credit challenges.”
In Tuesday’s bankruptcy filing, Tupperware reported more than $1.2 billion in liabilities and $679.5 million in total assets. The company’s shares are down 75% this year and closed Tuesday at 50 cents apiece.
“The reality is that Tupperware’s decline is not new,” Neil Saunders, GlobalData’s managing director, said in a statement Wednesday. “It’s very difficult to see how the brand can return to its glory days.”
Saunders explained that many consumers have moved to cheaper forms of home storage – noting that competition has increased over the years, particularly with the rise of online platforms such as Temu and retailers such as Target they are also expanding their range of home storage and kitchenware.
Tupperware’s roots date back to 1946. According to the company’s website, shortly after the Great Depression, chemist Earl Tupper found inspiration while making forms in a plastic factory – he intends to create an airtight seal for a plastic container, similar to that. on a can of paint, helping families save money on food waste.
The brand experienced explosive growth in the middle of the 20th century – especially with the rise of Tupperware parties, which were first held in 1948. Tupperware parties gave many women the opportunity to start their own businesses. them from their homes, to sell products in the community.
The system worked so well that Tupperware eventually pulled its products from stores. And in Tuesday’s bankruptcy announcement, the company confirmed that there are no current changes to Tupperware’s independent sales consultant agreements.
According to court documents released Tuesday, Tupperware currently employs more than 5,450 workers in 41 countries — and works with more than 465,000 global retailers who sell products voluntarily in about 70 countries.
Tuesday’s announcement also indicated a goal to “continue Tupperware’s transformation into a digital-led, technology-led company,” perhaps indicating a move toward greater confidence in sales on the brand’s website or perhaps online advertising, although the company did not. provide clear information.
In a statement, Tupperware President and CEO Laurie Ann Goldman acknowledged Tupperware’s recent financial struggles and said the bankruptcy filing is intended to provide “important flexibility” as the company pursues a turnaround. this one. He also confirmed that this brand is not going anywhere.
“Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are part of our Tupperware family,” Goldman said in a statement. “We plan to continue to serve our valued customers with the high-quality products they love and trust throughout this period.”
Goldman, formerly the CEO of Spanx, has been appointed as CEO of Tupperware in October 2023 – as part of a major leadership change. The company appointed a new management team last year.
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