Tupperware Brands, maker of the enduring plastic kitchenware storage, filed for Chapter 11 chapter safety late on Tuesday, succumbing to mounting losses amid weak demand for its meals storage containers.
The firm’s reputation exploded within the Nineteen Fifties as girls of the post-war era held “Tupperware parties” at their houses to promote the meals storage containers as they sought empowerment and independence.
However, it has misplaced its edge to rivals making cheaper and extra environmentally pleasant containers.
Last month, Tupperware raised doubts about its skill to stay in business after flagging potential chapter danger a number of occasions attributable to liquidity constraints.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Chief Executive Officer Laurie Goldman mentioned in a press release.
The firm mentioned it intends to acquire courtroom approval to proceed promoting its merchandise and charting out a sale course of for the business.
The firm has been making an attempt to show its business round for years after reporting a number of quarters of falling gross sales.
A post-pandemic leap in prices of labor, freight and uncooked supplies corresponding to plastic resin have additionally pressured its business.
Last 12 months, the corporate’s inventory noticed wild swings amid “meme stocks” rallies, the place retail buyers coordinate on social media and usually focus their speculative bets on corporations which are financially struggling or have a excessive brief curiosity.
Tupperware listed $500 million-$1 billion in estimated property and $1 billion-$10 billion in estimated liabilities, in accordance with chapter filings within the U.S. Bankruptcy Court for the District of Delaware. It listed the variety of collectors to be between 50,001 and 100,000.
In 2023, the corporate finalized an settlement with its lenders to restructure its debt obligations and signed funding financial institution Moelis & Co to assist discover strategic alternate options.
Source: www.dailysabah.com