From Glory To Bankruptcy: How This Company Started 77 Years Ago, Became A Household Name And Now Lost Relevance

New Delhi: Amidst mounting financial losses, Tupperware Brands Corp and some of its subsidiaries have filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.

The iconic food storage containers started 77 years ago, became a household name, but failed to keep up with the requirements post Covid-19 pandemic.

"The company listed $500 million-$1 billion in estimated assets and $1 billion-$10 billion in estimated liabilities, according to bankruptcy filings in the U.S. Bankruptcy Court for the District of Delaware, which showed the number of creditors to be between 50,001-100,000," reported Reuters.

How Tupperware Became A Household Name And Now Lost Relevance

"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," added Laurie Ann Goldman, President and Chief Executive Officer of Tupperware.

Tupperware said that it will seek Court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online. The Company will also seek Court approval to facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company.

There are no current changes to Tupperware's independent sales consultant agreements, the company said. Tupperware  will file certain customary motions seeking Court approval to support its operations during the process, including the continued payment of employee wages and benefits as well as compensating vendors and suppliers under normal terms for goods and services provided on or after the filing date, it added.

"Tupperware has been trying to turn its business around for about four years now after reporting a fall in sales for six consecutive quarters since the third quarter of 2021, as sticky inflation continued to dissuade its low and mid-income consumer base. In 2023, the company finalized an agreement with its lenders to restructure its debt obligations, and signed investment bank Moelis & Co to help explore strategic alternatives," Reported Reuters.