Tupperware Brands Inc. and several subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, succumbing to declining demand for their once-iconic food-storage containers and mounting financial losses.
After a brief boom during the pandemic, when more people cooked at home and demand for its colorful, airtight plastic containers increased temporarily, the company's struggles began again.
Since the pandemic began, costs of raw materials like plastic resins, labor, and shipping have soared, further eroding Tupperware's profit margins.
“Over the past few years, our financial condition has been significantly impacted by a challenging macroeconomic environment,” CEO Rory Goldman said in a press release.
Tupperware plans to file for bankruptcy after defaulting on its debt and has hired legal and financial advisers, Bloomberg reported Monday.
According to bankruptcy filings filed in the U.S. Bankruptcy Court for the District of Delaware, the company has estimated assets of between $500 million and $1 billion, liabilities of between $1 billion and $10 billion, and claims between 51,000 and 100,000 creditors.
Tupperware has reported six consecutive quarters of declining sales since the third quarter of 2021, and has been trying to turn around its business for about four years as persistently high inflation continues to discourage purchasing among low- and middle-income consumers.
The company plans to enter into a debt restructuring agreement with its creditors in 2023 and has retained investment bank Moelis & Co to help it explore strategic options.
