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Tupperware (TUP) Brands is sealing the deal by filing for Chapter 11 bankruptcy as it looks to navigate financial challenges.
The iconic company’s decision comes after declining sales for its vibrant food storage containers and stiff competition from more eco-friendly alternatives.
The Florida-based company said it plans to continue serving customers and aims to keep operations running smoothly during the bankruptcy process. Customers can still shop for their favorite products through sales consultants, retail partners, and online.
Tupperware said it is seeking court approval for a sale process to protect its beloved brand as it shifts towards a digital-first, technology-led company. Should it gain court approval, the company will “support its employees and vendors” and continue to offer wages, benefits, and normal payment terms for services.
In October 2023, Tupperware underwent a major leadership change, replacing CEO Miguel Fernandez with Laurie Ann Goldman, the former boss of underwear maker Spanx. During that time, Tupperware launched a strategic plan to modernize its operations in an effort to enhance its omni-channel capabilities.
According to CEO Goldman, the company will continue its transformation efforts to deliver high-quality products. However, she acknowledged that Tupperware’s financial struggles have worsened by a “challenging macroeconomic environment.”
In June, Tupperware said it would close its final U.S. facility by January 2025, which would result in layoffs of over 140 employees. That process is expected to start on Sept. 28. Last year in April, the company’s stock plummeted by nearly 50% after Tupperware warned of a potential business closure.
Filing for bankruptcy will help Tupperware gain the “flexibility” it needs to explore strategic options and better position itself “to serve shareholders,” Tupperware’s Goldman said.
Importantly, there will be no immediate changes to agreements Tupperware has with independent sales consultants, who remain a core part of the company’s sales strategy.
Founded in 1946 by chemist Earl Tupper, the food container brand rapidly gained popularity and became a staple in households across America.