Tupperware files for bankruptcy in US as demand slumps
Tupperware Brands and some of its subsidiaries have filed for Chapter 11 bankruptcy protection in the United States, succumbing to declining demand for its once-popular colourful food storage containers and ballooning losses.
The company has struggled to stem the drop in sales after a brief surge during the COVID-19 pandemic when people cooked more at home and turned to its airtight plastic containers to store leftovers.
The post-pandemic jump in costs of critical raw materials such as plastic resin, as well as labour and freight further dented the company’s margins.
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By continuing you agree to our Terms and Privacy Policy.In August, Tupperware had raised substantial doubt about its ability to continue as a going concern for the fourth time since November 2022 and said it faced a liquidity crunch.
The company listed $US500 million to $US1 billion ($A740 million - $A1.5 billion) in estimated assets and $US1 billion - $US10 billion ($A1.5 billion - $A15 billion) in estimated liabilities, according to bankruptcy filings on Tuesday in the US Bankruptcy Court for the District of Delaware.
Tupperware had 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 report said the bankruptcy preparations began following prolonged negotiations with lenders over the more than $US700 million ($A1 billion) in debt.
