Tupperware, known the world over for its plastic food storage containers, has filed for bankruptcy after years of falling popularity and financial troubles.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Laurie Ann Goldman, president and CEO of Tupperware Brands Corporation, said on Tuesday.
Chapter 11 bankruptcy allows companies to solve their financial problems by restructuring.
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“This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company,” Goldman added.
The 78-year-old brand, which has been operating in Australia since the 1960s, has historically sold to consumers only through so-called direct sales, most commonly at Tupperware parties.
“The party is over for Tupperware,” Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, said in a note. “There is still a chance a buyer for the business can be found but, with plastic seen as far from fantastic among eco-aware consumers, revitalizing the brand will be an uphill struggle.”
Even though the brand was once a household name, it became less popular with younger consumers, in contrast with some of its competitors.
Tupperware rang the alarm bells in April 2023 when it disclosed in a regulatory filing that it could go out of business.
The Florida-based company said at the time that, if it didn’t find more cash, it would no longer be able to fund its operations.
Tupperware found that lifeline four months later, when it reached a deal with its creditors to reduce its interest payment obligations by U$150 million. It also secured U$21 million in new financing, an extension on the deadline for paying back about U$348 million in debt and a reduction in the amount of debt it owed by about U$55 million.
However, the company’s finances still declined following the deal.
Tupperware shuttered its only US plant, in South Carolina, this year, resulting in 148 layoffs, according to a Worker Adjustment and Retraining Notification Act filing.
The company said it would seek the approval of the bankruptcy court to continue operating during Chapter 11 proceedings.
Many businesses file for bankruptcy protection to wind down some operations, shed debt and cut costs. Chapter 11 bankruptcy is a common route. Tupperware shares have plummeted 74.5 per cent this year and last traded at just 51 cents.