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Another Famous American Brand Files For Bankruptcy
Tupperware, known for its line of plastic containers for food storage and preparation, has filed for bankruptcy.
“Tupperware Brands Corporation, an iconic global brand, today announced that the Company and certain of its subsidiaries have voluntarily initiated Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware,” the company announced in a press release.
“Tupperware will seek Court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online. The Company will also seek Court approval to facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware’s transformation into a digital-first, technology-led company,” it continued.
Tupperware has filed for bankruptcy. pic.twitter.com/kVJyZhy7EM
— Pop Base (@PopBase) September 18, 2024
“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,” Laurie Ann Goldman, President and Chief Executive Officer of Tupperware, said.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment. 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 added.
Tupperware files for bankruptcy after struggle to compete with copycats
The 78-year-old company became a household name in the 1950s and ‘60s, but its patent only lasted for 20 years
Read more https://t.co/sZeep5tR1T pic.twitter.com/DQC9oTU9Ku
— The Telegraph (@Telegraph) September 18, 2024
Per CNN:
Tupperware has historically sold to consumers only through so-called direct sales, most commonly at “Tupperware parties,” similar to cosmetic company Avon’s business model, and only began selling in Target in 2022. The 78-year-old brand empowered women to enter the sales business.
“The party is over for Tupperware,” Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, said in a note. “There is still a chance a buyer for the business can be found but, with plastic seen as far from fantastic among eco-aware consumers, revitalizing the brand will be an uphill struggle.”
Even though the brand was once a household name, it became less popular with younger consumers, in contrast with some of its competitors.
Tupperware rang the alarm bells in April 2023 when it disclosed in a regulatory filing that it could go out of business. The Florida-based company said at the time that, if it didn’t find more cash, it would no longer be able to fund its operations.
Food storage brand Tupperware filed for Chapter 11 bankruptcy protection this week. The company says its focus on direct sales, once a core strength, eventually became a weakness. https://t.co/Bk6PnLsARo
— Fast Company (@FastCompany) September 18, 2024
Tupperware files for bankruptcy in US and hunts for new owners https://t.co/aYULJVSgy8
— Guardian Money (@guardianmoney) September 18, 2024
Newsweek reports:
Tupperware’s troubles have not gone unnoticed by industry observers.
Last year, the company sought additional financing to keep afloat, warning investors that it risked being delisted from the New York Stock Exchange.
The warning proved prophetic—Tupperware’s stock has plummeted 75% this year, closing at around 50 cents per share on Tuesday, a sharp contrast to its former standing as an international powerhouse.
Despite the challenges, Tupperware remains committed to keeping the business alive. The company stated its intention to restructure and find a potential buyer to help it navigate through the bankruptcy process.