Tupperware Brands and several of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, facing the consequences of falling demand for its once-popular colorful food storage containers and increasing financial losses.
The company’s efforts to halt the decline in sales, which had seen a temporary boost during the pandemic as more people cooked at home and used its airtight containers for leftovers, have faltered. Post-pandemic, rising costs of essential raw materials like plastic resin, along with increases in labor and freight expenses, have further squeezed its profit margins.
In August, Tupperware expressed serious doubts about its ability to continue operations for the fourth time since November 2022, citing a liquidity crisis.
Bankruptcy filings in the US Bankruptcy Court for the District of Delaware indicated that the company has estimated assets between $500 million and $1 billion, and liabilities ranging from $1 billion to $10 billion.
Tupperware had been preparing for bankruptcy protection after violating the terms of its debt and seeking assistance from legal and financial advisers, as reported by Bloomberg on Monday. The report noted that these bankruptcy preparations followed extended negotiations with lenders regarding over $700 million in debt.
