(CSN)- Tupperware, famous worldwide for its plastic food storage containers, has filed for bankruptcy after experiencing years of declining popularity and financial issues.
“Over the past few years, our financial situation has been greatly affected by the tough economic environment,” said Laurie Ann Goldman, president and CEO of Tupperware Brands Corporation, in a statement released late Tuesday.
Filing for Chapter 11 bankruptcy allows companies to address their financial problems through restructuring. “This process is designed to give us the necessary flexibility as we explore strategic options to help us become a digital-first, technology-driven company,” Goldman added.
Tupperware has traditionally sold its products directly to consumers, mainly through “Tupperware parties,” which is similar to how Avon operates, and it only started selling in Target in 2022. The 78-year-old brand has played a significant role in helping women enter the sales industry.
“The party is over for Tupperware,” said Susannah Streeter, head of money and markets at the UK investment platform Hargreaves Lansdown, in a statement. “There’s still a possibility that a buyer could be found for the business, but revitalizing the brand will be tough, especially since eco-conscious consumers view plastic as less appealing.”
Although Tupperware was once a household name, it has lost popularity among younger consumers compared to some competitors.
In April 2023, Tupperware raised concerns when it revealed in a regulatory filing that it might go out of business. The Florida-based company stated that if it couldn’t secure more cash, it wouldn’t be able to continue its operations.
Four months later, Tupperware found a way to survive by reaching an agreement with its creditors to lower its interest payment obligations by $150 million. The company also secured $21 million in new funding, extended the deadline to repay about $348 million in debt, and reduced its total debt by around $55 million.
Despite these efforts, Tupperware’s financial situation continued to worsen after the deal.
This year, the company closed its only manufacturing plant in the U.S., located in South Carolina, leading to 148 layoffs, as reported in a Worker Adjustment and Retraining Notification Act filing.
On Tuesday, Tupperware announced that it would ask the bankruptcy court for permission to keep operating during its Chapter 11 proceedings.
Many companies choose to file for bankruptcy protection to scale back operations, eliminate debt, and reduce costs. Chapter 11 bankruptcy is a common approach for this.
Tupperware’s stock has dropped 74.5% this year and was last traded at just 51 cents.
This story has been updated with new information.
