Iconic Tupperware Brands files for Chapter 11 bankruptcy

NEW YORK (AP) – Tupperware Brands, the company that revolutionized food storage decades ago, has filed for Chapter 11 bankruptcy protection.

Orlando, Florida-based Tupperware plans to continue operating during bankruptcy proceedings and will seek court approval for the sale “to protect its iconic brand,” the company said before midnight Tuesday.

The company is seeking bankruptcy protection amid a growing struggle to revive its business. Tupperware Some improved sales growth In the early days of the COVID-19 pandemic, but overall sales have steadily declined since 2018 due to increasing competition. And financial problems continue to pile up for the company.

Doubts about Tupperware's future have floated around for some time. Last year, the company sought additional financing after warning investors About staying power in business And it risks being delisted from the New York Stock Exchange.

The company received an additional non-compliance notice from the NYSE earlier this year for failing to file annual results with the Securities and Exchange Commission. And Tupperware has warned about its ability to stay afloat in recent months, citing “significant liquidity challenges” in an August securities filing.

In Tuesday's bankruptcy filing, Tupperware reported more than $1.2 billion in total debt and $679.5 million in total assets. The company's shares have fallen 75% this year and closed Tuesday at about 50 cents.

“The reality is Tupperware's decline is not new,” GlobalData managing director Neil Saunders said in comments on Wednesday. “It's very difficult to see how the brand can return to its glory days.”

Saunders explained that many consumers are shifting to cheaper home storage brands — noting that competition has intensified over the years, especially with the rise of online platforms like Temu, and retailers like Target also beefing up their own home storage and kitchenware brands.

Tupperware's roots date back to 1946. According to the company's website, shortly after the Great Depression, chemist Earl Tupper found inspiration while making molds at a plastics factory – setting out on a mission to create an airtight seal for a plastic container, similar to the one on a paint can, to help families save money on food waste. .

The brand experienced explosive growth in the mid-20th century — especially with the rise of Tupperware parties, first held in 1948. Tupperware parties significantly allowed many women to run their own businesses out of their homes, selling products within social circles.

The system worked so well that Tupperware eventually removed its products from stores. And in Tuesday's bankruptcy filing, the company maintained that there were no current changes to Tupperware's independent sales consultant contract.

According to court documents released Tuesday, Tupperware currently employs more than 5,450 workers in 41 countries — and additionally partners with a global sales force of more than 465,000 consultants who sell products on a freelance basis in nearly 70 countries.

Tuesday's announcement “further advances Tupperware's transformation into a digital-first, technology-led company,” possibly signaling a move toward increased reliance on the brand's website or perhaps more online-focused marketing, though the company did not. Provide correct specifics.

In a statement, Tupperware President and CEO Laurie Ann Goldman acknowledged Tupperware's recent financial struggles and said the bankruptcy process is intended to provide “necessary flexibility” following the transition. He also maintained that the brand is not going anywhere.

“Whether you're a dedicated member of our Tupperware team, sell, cook or love our Tupperware products, you're part of our Tupperware family,” Goldman said in a statement. “We plan to continue serving our valued customers throughout this process with the high-quality products they love and trust.”

Goldman, who previously served as CEO of Spanx, was appointed CEO of Tupperware in October 2023 — as part of a larger leadership shakeup. The company has appointed a new management team within the last year.