Tupperware Brands and its subsidiaries have filed for Chapter 11 bankruptcy protection in the US. The company, known for its food storage containers, announced the filing on Tuesday amid increasing financial difficulties.
Tupperware president and CEO Laurie Ann Goldman said the company’s financial situation has been severely affected by challenging economic conditions.”As a result, we explored numerous strategic options and determined this is the best path forward. 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 better positioned to serve our stakeholders,” Goldman said.
Tupperware has struggled with declining sales and significant financial losses in recent years. Last year, the company warned it might not survive unless it quickly secured new financing.
The company aims to continue operations during the bankruptcy process while seeking approval to start a sale process for the business to protect its brand.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
Tupperware was founded in 1946 by Earl Tupper, who designed the airtight seal on the containers. Tupperware gained popularity in the 1950s and 1960s through “Tupperware Parties,” where representatives demonstrated the products in social gatherings.
Tupperware’s shares have dropped by more than 50% this week following reports of the bankruptcy filing. The company cites increasing competition, higher raw material and transportation costs, and rising wages as factors affecting its profits.
Tupperware president and CEO Laurie Ann Goldman said the company’s financial situation has been severely affected by challenging economic conditions.”As a result, we explored numerous strategic options and determined this is the best path forward. 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 better positioned to serve our stakeholders,” Goldman said.
Tupperware has struggled with declining sales and significant financial losses in recent years. Last year, the company warned it might not survive unless it quickly secured new financing.
The company aims to continue operations during the bankruptcy process while seeking approval to start a sale process for the business to protect its brand.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
Tupperware was founded in 1946 by Earl Tupper, who designed the airtight seal on the containers. Tupperware gained popularity in the 1950s and 1960s through “Tupperware Parties,” where representatives demonstrated the products in social gatherings.
Tupperware’s shares have dropped by more than 50% this week following reports of the bankruptcy filing. The company cites increasing competition, higher raw material and transportation costs, and rising wages as factors affecting its profits.
Source : Times of India
