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Tupperware Brands, Inc. has filed for Chapter 11 bankruptcy protection in Delaware. The Orlando, Florida-based food storage and kitchen products company, which has been in business for nearly 80 years, is seeking bankruptcy protection amid growing struggles to revitalize its business. Tupperware says that they plan to continue operating during the bankruptcy proceedings and will seek court approval to sell the company, “in order to protect its iconic brand.”
Tupperware sales increased during at the beginning of the COVID-19 pandemic, but sales have been in steady decline since 2018 due to rising competition. Last year, the company sought additional financing as it warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange; and earlier this year, Tupperware received an additional non-compliance notice from the NYSE for failing to file its annual results with the Securities and Exchange Commission.
In their bankruptcy petition, Tupperware reported more than $1.2 billion in total debts and $679.5 million in total assets. Shares for the company have fallen 75% this year and closed Tuesday at about 50 cents apiece. According to court documents, Tupperware currently employs more than 5,450 employees across 41 countries — and additionally partners with global sales force of over 465,000 consultants who sell products on a freelance basis in nearly 70 countries.
In a statement, Tupperware President and CEO Laurie Ann Goldman (who previously served as CEO of Spanx) said that the bankruptcy proceedings are to provide “essential flexibility” as the company pursues this transformation: “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.”
Tupperware was founded in 1946 as a solution to food storage. The concept of “Tupperware parties” took off in 1948, often hosted by independent female contractors out of their homes, and became its main sales vehicle. Tupperware said that there will be no current changes to its independent sales consultant agreements, adding it would file court motions to address employee wages and benefits and payment of vendors and suppliers while in bankruptcy.
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