Tupperware Brands, Inc. has initiated Chapter 11 bankruptcy proceedings in Delaware. The Florida-based company, known for its food storage and kitchen products, has been operating for nearly 80 years and is struggling to revamp its business. Tupperware intends to keep its operations running during the bankruptcy process and aims to secure court approval to sell the company to safeguard its well-known brand.
Sales at Tupperware surged at the onset of the COVID-19 pandemic, but have been declining steadily since 2018, attributed to increasing competition. Last year, the company sought additional funding and alerted investors about its precarious financial situation and the potential risk of being delisted from the New York Stock Exchange. Earlier this year, Tupperware received another non-compliance notice from the NYSE due to its failure to submit its annual results to the Securities and Exchange Commission.
In its bankruptcy filing, Tupperware disclosed it has over $1.2 billion in total liabilities against $679.5 million in total assets. The company’s shares have plummeted by 75% this year, closing at around 50 cents each on Tuesday. Tupperware currently employs over 5,450 individuals across 41 countries and works with a global sales force of more than 465,000 independent consultants selling products in nearly 70 countries.
Laurie Ann Goldman, Tupperware’s President and CEO, emphasized that the bankruptcy process is designed to offer “essential flexibility” as the company aims to transform into a digital-first, technology-driven enterprise conducive to serving its stakeholders. She stated, “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 emerged as a solution for food storage, and its “Tupperware parties,” which started in 1948, were typically hosted by independent women from their homes, becoming the company’s primary sales method. Tupperware has assured that there will be no immediate changes to its independent sales consultant agreements and will file motions related to employee wages, benefits, and payments to vendors and suppliers during the bankruptcy proceedings.