NEW YORK – Tupperware Brands, the iconic leader in food storage solutions, has filed for Chapter 11 bankruptcy protection as it seeks to navigate substantial financial challenges.
Based in Orlando, Florida, Tupperware intends to continue its operations throughout the bankruptcy process and aims to secure court approval for a sale to safeguard its distinguished brand. The announcement was made shortly before midnight on Tuesday.
The company is grappling with ongoing difficulties in revitalizing its business. Although Tupperware saw a temporary increase in sales during the early stages of the COVID-19 pandemic, it has experienced a steady decline in overall sales since 2018, driven by intensifying competition. Financial burdens have been piling up, prompting concerns regarding Tupperware’s future.
Last year, Tupperware sought additional financing, revealing troubling warnings about its sustainability and the risk of being delisted from the New York Stock Exchange. Earlier this year, the company received a non-compliance notice from the NYSE for failing to submit its annual results to regulators. More recently, Tupperware indicated significant liquidity challenges in its August filings.
In its bankruptcy petition, Tupperware reported over $1.2 billion in total debts against $679.5 million in total assets. This year alone, the company’s shares have plummeted by 75%, closing at approximately 50 cents on Tuesday.
Founded in 1946, Tupperware emerged after the Great Depression when chemist Earl Tupper sought to create airtight seals for plastic containers, reducing food waste for families. The brand surged in popularity during the mid-20th century, particularly with the introduction of Tupperware parties, which empowered women to start their own home-based businesses by selling products within their communities.
As part of its restructuring, Tupperware affirmed that there would be no immediate changes to its independent sales consultant agreements. Current court documents reveal that Tupperware employs over 5,450 individuals worldwide and collaborates with a global sales force of more than 465,000 freelance consultants.
The company’s recent announcement also highlighted its intention to transform into a digital-first brand, emphasizing a potential shift towards heightened online sales and marketing strategies, although specifics were not disclosed.
Tupperware President and CEO Laurie Ann Goldman acknowledged the financial hurdles the company faces, stating that the bankruptcy process is designed to provide essential flexibility as it implements this transformation while assuring stakeholders that the brand is committed to its future.
“Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family,” Goldman stated. “We will continue to deliver the high-quality products that our valued customers trust throughout this process.”
Goldman was appointed CEO in October 2023, following a broader leadership overhaul that included a new management team within the last year.
