Tupperware and some of its subsidiaries have filed for Chapter 11 bankruptcy protection, the once-iconic food container maker said in a statement Tuesday night.
The company is facing declining sales after a surprising increase during the Covid-19 pandemicas masses of people were stuck at home trying to cook, increasing demand for Tupperware’s colorful plastic containers with flexible, airtight closures.
Rising raw material and shipping costs after the pandemic, coupled with higher wages, also had a negative impact on Tupperware’s profits.
Last year it warned of “substantial doubt” about the ability to continue functioning given the company’s poor financial position.
“The company’s financial position has been significantly impacted by challenging macroeconomic conditions over the past several years,” President and CEO Laurie Ann Goldman said in a statement announcing the bankruptcy filing.
“We therefore explored several strategic options and concluded that this is the best path forward,” Goldman said.
The company said it would seek court approval for a sale process to protect the brand and “further advance Tupperware’s transformation into a digital-first, technology-driven company.”
The Orlando, Florida-based company said it would also seek permission to continue operating during the bankruptcy proceedings and would continue to pay its employees and suppliers.
“We plan to continue to provide our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
The company’s shares were trading at $0.5099 on Monday, down from $2.55 in December last year.
Tupperware said it had implemented a strategic plan to modernize its operations and improve efficiency to drive growth following the appointment of a new management team last year.
“The company has made significant progress and plans to continue this important transformation.”
In its filing with the U.S. Bankruptcy Court for the District of Delaware, Tupperware listed assets between $500 million and $1 billion and liabilities between $1 billion and $10 billion.
The file also states that there are between 50,000 and 100,000 creditors.
Tupperware has lost popularity with consumers in recent years and an initiative to arrange distribution through the major retail chain Target has not provided any relief.
The company’s origins date back to 1946, when chemist Earl Tupper “was inspired while making molds in a plastics factory shortly after the Great Depression,” according to Tupperware’s website.
“If he could design an airtight seal for plastic storage containers, like the one on a paint pot, he could help war-weary families save money on precious food waste.”
Over time, Tupper’s containers became so popular that many people called any plastic food container Tupperware. And people even hosted “Tupperware parties” in their homes to sell the containers to friends and neighbors.
