Current:Home > InvestTupperware, company known for its plastic containers, files for Chapter 11 bankruptcy -VisionFunds
Tupperware, company known for its plastic containers, files for Chapter 11 bankruptcy
View
Date:2025-04-18 23:15:41
This story was updated to add new information.
Tupperware Brands Corp. and some of its subsidiaries filed for Chapter 11 bankruptcy on Tuesday, the company announced in a news release.
The bankruptcy filing comes amid dwindling demand for its once-iconic food storage containers and mounting financial loses, according to Reuters.
Tupperware said in the news release that the company will seek court approval to continue operating during the bankruptcy proceedings and "remains focused on providing customers with its award-winning, innovative products." The company also said it will 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."
"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," said Laurie Ann Goldman, President and CEO of Tupperware, in therelease.
"We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process," Goldman added.
Tupperware has been planning to file for bankruptcy protection after breaching the terms of its debt and enlisting legal and financial advisers, Bloomberg reported on Monday.
The company did not respond to a USA TODAY request for comment Wednesday morning.
Company's struggles resumed after short-lived pandemic boost
The company's struggles resumed after a short-lived pandemic boost, when increased home cooking briefly drove demand for its colorful, airtight plastic containers. A post-pandemic jump in costs of raw materials such as plastic resin, as well as labor and freight, further dented Tupperware margins, Reuters reported.
Last month, Tupperware raised doubts about its ability to remain in business after flagging potential bankruptcy risk several times due to liquidity constraints. The company has been trying to turn its business around for years after reporting several quarters of falling sales.
Last year, the company's stock saw wild swings amid "meme stocks" rallies, where retail investors coordinate on social media and typically focus their speculative bets on companies that are financially struggling or have high short interest.
In August 2023, the company announced it had finalized an agreement with its lenders to restructure its existing debt obligations.
Earlier in 2023, Tupperware warned it could go out of business, saying in a regulatory filing at the time that there was "substantial doubt about the company's ability to continue as a going concern" and that it had engaged with financial advisors to find financing to keep the company in business.
Concerns for Tupperware came after the New York Stock Exchange warned in early 2023 the company's stock could be de-listed because it didn't file an annual report for 2022. While Tupperware said it planned to file a report within the next 30 days, it added "there can be no assurance" it "will be filed at such time."
At the time, the company said it was reviewing several aspects of its company, including its cash management, real estate portfolio for property available and possible layoffs.
History of Tupperware
According to the company's website, Tupperware Brands was founded in 1946 and is a "global consumer products" company that designs "innovate, functional and environmentally responsible" products.
The company's first products were debuted by chemist Earl S. Tupper in Massachusetts in the early 1940s after he had a "spark of inspiration" while creating molds at a plastics factory shortly after the Great Depression.
Shortly thereafter, Brownie Wise held the first at-home Tupperware party, leading to her being named the company's Vice President of Marketing in the 1950s.
Contributing: Jordan Mendoza, USA TODAY
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.
veryGood! (727)
Related
- How to watch the 'Blue Bloods' Season 14 finale: Final episode premiere date, cast
- Carrie Underwood will return to ‘American Idol’ as its newest judge
- Olympic gymnastics live updates: Simone Biles wins gold medal in all-around
- Body of 20-year-old North Carolina man recovered after 400-foot fall at Grand Canyon National Park
- Appeals court scraps Nasdaq boardroom diversity rules in latest DEI setback
- 2 New York City police officers shot while responding to robbery, both expected to survive
- Watch as adorable bear cubs are spotted having fun with backyard play set
- Simone Biles wins historic Olympic gold medal in all-around final: Social media reacts
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
- 4 Las Vegas teens agree to plead guilty as juveniles in deadly beating of high school student
Ranking
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- ACLU sues Washington state city over its anti-homeless laws after a landmark Supreme Court ruling
- Drag queen in Olympic opening ceremony has no regrets, calls it ‘a photograph of France in 2024’
- Drag queen in Olympic opening ceremony has no regrets, calls it ‘a photograph of France in 2024’
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Brazilian Swimmer Ana Carolina Vieira Breaks Silence on Olympic Dismissal
- Who will host 'Pop Culture Jeopardy!' spinoff? The answer is...
- NBC defends performances of Peyton Manning, Kelly Clarkson on opening ceremony
Recommendation
Can Bill Belichick turn North Carolina into a winner? At 72, he's chasing one last high
Did Katie Ledecky win? How she, Team USA finished in 4x200 free relay
Mýa says being celibate for 7 years provided 'mental clarity'
2024 Olympics: Serena Williams' Husband Alexis Ohanian, Flavor Flav Pay Athlete Veronica Fraley’s Rent
Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
Watch a DNA test reunite a dog with his long lost mom
Mýa says being celibate for 7 years provided 'mental clarity'
Who is Paul Whelan? What to know about Michigan man freed from Russia