Tupperware Brands, Inc. has initiated Chapter 11 bankruptcy proceedings in Delaware as part of its efforts to revitalize its struggling business. The Orlando-based company, a staple in the food storage and kitchen products industry for almost 80 years, aims to continue operations throughout the bankruptcy period and is seeking court approval to facilitate the sale of the company to safeguard its well-known brand.
Despite a spike in sales at the start of the COVID-19 pandemic, Tupperware has experienced a steady decrease in sales since 2018, largely attributed to increasing competition. Last year, the firm attempted to secure additional financing after expressing concerns to investors about its viability and the possibility of being delisted from the New York Stock Exchange. Earlier this year, Tupperware received a notice from the NYSE regarding non-compliance for not filing its annual results with the Securities and Exchange Commission.
In its bankruptcy filing, Tupperware disclosed total debts exceeding $1.2 billion against total assets of $679.5 million. Its stock price has plummeted 75% this year, closing at approximately 50 cents per share on Tuesday. Tupperware currently employs over 5,450 staff members in 41 countries and collaborates with a global sales force of around 465,000 independent consultants selling products in nearly 70 countries.
Laurie Ann Goldman, President and CEO of Tupperware, stated that the bankruptcy process is intended to provide “essential flexibility” to aid in the company’s transformation. She emphasized, “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. 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. We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”
Founded in 1946, Tupperware gained popularity through its innovative food storage solutions and the concept of “Tupperware parties,” which began in 1948 and were hosted in homes by independent female representatives. The company has assured that there will be no immediate alterations to its agreements with independent sales consultants while it works through bankruptcy, and it plans to file motions regarding employee wages, benefits, and payments to vendors and suppliers during this time.