Household Name Files Foe Chapter 11 Bankruptcy Amid Financial Struggles but Vows to Continue Operations

Clear Facts

• Tupperware Brands Corporation has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.
• The company reported estimated assets of $500 million-$1 billion and liabilities of $1 billion-$10 billion.
• Tupperware plans to continue operations through sales consultants, retail partners, and online platforms during the bankruptcy process.

Tupperware Brands Corporation, a household name for food storage solutions since its founding in 1946, has filed for Chapter 11 bankruptcy. This decision comes on the heels of the company closing its last remaining U.S. plant due to ongoing financial difficulties.

The bankruptcy filing, made in the U.S. Bankruptcy Court for the District of Delaware, revealed that Tupperware has estimated assets ranging from $500 million to $1 billion, while its liabilities are between $1 billion and $10 billion. The number of creditors is listed between 50,001 and 100,000.

Laurie Ann Goldman, president and CEO of Tupperware, addressed the company’s loyal customer base and employees in a statement.

“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.”

Goldman further elaborated on the challenges faced by the company in recent years.

“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward. 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.”

The Orlando, Florida-based company has been grappling with financial instability for some time. In 2020, Tupperware initiated a turnaround plan aimed at improving profitability, strengthening its balance sheet, and restructuring its debt.

However, in an April 2023 filing with the Securities and Exchange Commission, Tupperware expressed doubts about its ability to continue operating.

“[T]he Company has concluded that there is substantial doubt about its ability to continue as a going concern for at least one year from the expected issuance date of its Form 10-K financial statements.”

In June, Tupperware announced the permanent closure of its Hemingway, South Carolina facility, resulting in 148 layoffs. The plant’s operations are being transitioned to Lerma, Mexico, where most products sold in the U.S. and Canada are already manufactured.

The company’s rise to fame began in the 1950s with the phenomenon of “Tupperware parties,” where women sold the products in their homes, seeking empowerment and independence in a post-war society.

Despite the financial hurdles, Tupperware is committed to maintaining its operations through sales consultants, retail partners, and online platforms during the bankruptcy process.

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