The US company’s struggles resumed after a short-lived Covid-19 boost, when increased home cooking briefly drove demand for its colourful, airtight plastic containers.
A post-pandemic jump in costs of raw materials such as plastic resin, as well as labour and freight, further dented Tupperware 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 statement on Tuesday.
Tupperware has been planning to file for bankruptcy protection after breaching the terms of its debt and enlisting legal and financial advisers, Bloomberg reported on Monday.
The company listed $US500 million to $US1 billion in estimated assets ($NZ807 million to $NZ1.6 billion) and $1 billion to $10 billion in estimated liabilities, according to bankruptcy filings in the US Bankruptcy Court for the District of Delaware, which showed the number of creditors to be between 50,001 to 100,000.
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 finalised an agreement with its lenders to restructure its debt obligations, and signed investment bank Moelis & Co to help explore strategic alternatives.
The company was founded in 1924 by chemist Earl Tupper in Massachusetts. Its signature container, the Wonderlier Bowl, continues to be sold. It helped to create the food storage category revolutionising the way food is stored, served and prepared, the company said on its website.
– additional reporting ODT Online
