Tupperware files for bankruptcy as its colorful containers lose relevance

Tupperware Brands Corp. and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, succumbing to decreased demand for its once-popular food storage containers and increasing financial losses.

The company’s challenges persisted after a brief uptick during the pandemic, when a surge in home cooking temporarily boosted the demand for its colorful, airtight plastic containers.

Rising costs of raw materials like plastic resin, as well as labor and freight post-pandemic, further eroded Tupperware’s profit margins.

“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Chief Executive Officer Laurie Goldman said in a press release.

Tupperware had been preparing to file for bankruptcy protection after violating its debt terms and seeking legal and financial advice, as reported by Bloomberg on Monday.

According to bankruptcy filings in the US Bankruptcy Court for the District of Delaware, the company listed $500 million-$1 billion in estimated assets and $1 billion-$10 billion in estimated liabilities, with the number of creditors ranging between 50,001-100,000.

See also  Completing Karl-Anthony Towns trade costs Knicks second-round picks