Food packaging giant Tupperware Brands said on Tuesday it had filed for Chapter 11 bankruptcy protection after announcing it would close its last U.S. factory to move production to Mexico.
“Tupperware will seek the Court's approval to continue operating during the period of litigation and will remain focused on providing customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online,” the company said in a press release. release.
Company executives added that they were also seeking court approval “to expedite the divestiture process while protecting our iconic brands and furthering Tupperware's transformation into a digital-first, technology-driven company.”
The Tupperware brand became a huge hit in the United States in the 1950s as a direct marketing technique that allowed housewives to sell products in their homes. Hold According to WJET/WFXP, “It has assets between $500 million and $1 billion, including $7.4 million in cash, and liabilities of $1 billion to $10 billion to more than 50,000 creditors.”
President and CEO Laurie Ann Goldman said filing for bankruptcy was the best option in “challenging” economic times.
Over the past few years, our financial condition has been significantly impacted by a challenging macroeconomic environment. As a result, we have considered a number of strategic options and determined that this is our best path forward. This process is intended to provide us with the flexibility we need to pursue strategic options that support our transformation into a digital-first, technology-driven company that can better serve our stakeholders.
The Orlando, Fla.-based brand currently has about 5,450 employees and more than 465,000 freelance salespeople in dozens of countries, WJET/WFXP reported.
The bankruptcy filing comes just months after the kitchen appliance company collapsed. Announced Its last U.S. manufacturing plant, in Hemingway, South Carolina, is scheduled to close by January 2025.
Once Tupperware starts production, production will be moved to Lerma, Mexico. Dismissal About 150 Hemingway employees were laid off on September 28, according to Breitbart News.
