CHICAGO, ILLINOIS - APRIL 10: Tupperware products are offered for sale at a retail store on April 10, 2023 in Chicago, Illinois. Tupperware stock closed down nearly 50 percent today after the company warned that it may go out of business. Scott Olson/Getty Images
After suffering from disappointing sales due to low demands, the iconic brand for food containers, Tupperware Brands has succumbed to their losses.
On Tuesday night, CNBC reported that Tupperware is now under Chapter 11 bankruptcy protection. The brand became popular in 1950s, specifically during post-wars, where women would seek independence and empowerment by holding Tupperware parties at home and sell these food containers.
The popularity declined over time after cheaper and non-plastic rivals became the new trend.
Tupperware CEO, Laurie Goldman, acknowledged their decline to CNBC and calls the market a "challenging macroeconomic environment."
For Tupperware, filing the bankruptcy has been a decision they've been pining for months. In fact, Reuters shared that the brand were already thinking about flagging themselves as bankrupt as their doubt on remaining in business increased over constraints in liquidity matters.
Tupperware also admitted that they have tried transforming their business operations for years as they lose sales quarter per quarter. After the pandemic, not only did cost of labor went up, plastic costs and other raw materials also joined the ranks, pressuring them to makes more sales.
The company is still seeking court permissions to keep selling their iconic food storage products as they explore their options on selling the business. Last year, another Reuters report learned that they already finalized an agreement with Moelis & Co to look for alternatives while they sort out their debts with lenders.
Currently, the bankruptcy filing revealed that Tupperware has $500 million to $1 billion in assets with $1 billion to $10 billion in debt and 50,001 to 100,000 creditors.
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