NEW YORK (AP) — Tupperware Brands, the company that revolutionized food preservation decades ago, has filed for Chapter 11 bankruptcy protection.
Orlando, Florida-based Tupperware plans to continue operating through the bankruptcy process and ask the court to approve the sale “to protect our iconic brands,” the company announced just before midnight Tuesday.
The company has filed for bankruptcy protection as it struggles to turn its business around. Sales growth improved slightly The company saw sales grow early in the COVID-19 pandemic, but overall sales have declined steadily since 2018 due to increased competition, and its financial problems continue to mount.
Doubts have been brewing about Tupperware’s future for some time: Last year, the company issued a warning to investors and asked for more funding. Whether or not the business can continue There is also a risk of being delisted from the New York Stock Exchange.
The company received a further non-compliance notice from the New York Stock Exchange earlier this year after failing to file annual financial reports with the Securities and Exchange Commission. Tupperware has also been warning about its ability to stay afloat in recent months, citing “significant liquidity issues” in an August securities filing.
In its bankruptcy filing on Tuesday, Tupperware reported total liabilities of more than $1.2 billion and total assets of $679.5 million. The company’s shares have fallen 75% this year, closing at about 50 cents a share on Tuesday.
“The reality is that Tupperware’s decline is nothing new,” Neil Saunders, managing director of GlobalData, said in a commentary on Wednesday. “It will be very hard for the brand to regain its glory days.”
Sanders explained that many consumers are moving to cheaper home storage brands, noting that competition has increased over the years, especially with the rise of online platforms like Temu and retailers like Target also ramping up their own home storage and kitchenware brands.
Tupperware’s roots date back to 1946. Just after the Great Depression, chemist Earl Tupper had an epiphany while making molds in a plastics factory and set out on a mission to develop an airtight seal for plastic containers similar to paint cans and help families save money on food waste, according to the company’s website.
The brand experienced explosive growth in the mid-20th century, especially with the rise of the Tupperware Parties, the first of which was held in 1948. The Tupperware Parties gave many women the opportunity to run their own businesses from home and sell their products in high society circles.
The system worked so well that Tupperware eventually pulled the products from its stores, and Tuesday’s bankruptcy announcement also asserted that there are currently no changes to Tupperware’s independent sales consultant contracts.
According to court documents unsealed Tuesday, Tupperware currently employs more than 5,450 people in 41 countries and partners with a global sales force of more than 465,000 consultants who sell its products as freelancers in about 70 more countries.
Tuesday’s announcement also outlined a goal to “further accelerate Tupperware’s transformation into a digital-first, technology-driven company,” which could signal a move toward greater reliance on the brand’s website sales or more online-focused marketing, though the company did not provide specifics.
In a statement, Tupperware President and CEO Laurie Ann Goldman acknowledged Tupperware’s recent financial difficulties and said the bankruptcy proceedings were meant to provide the company “critical flexibility” as it continues to transform, but she also insisted the brand is not going away.
“Whether you’re a dedicated member of the Tupperware team, sell or cook with Tupperware products, or simply enjoy using Tupperware products, you are part of the Tupperware family,” Goldman said in a statement. “Throughout this process, we intend to continue to provide our valued customers with the high-quality products they love and trust.”
Goldman, who previously served as CEO of Spanx, was named CEO of Tupperware in October 2023 as part of a larger leadership transition. The company appointed new executives within the past year.
