A post-pandemic rise in costs of raw materials and shipping, along with higher wages, also hurt Tupperware's bottom line. Last year, it warned of "substantial doubt" about its ability to keep operating in light of its poor financial position. Over the last several years, the Company's financial position has been severely impacted by the challenging macroeconomic environment.
The company said it would seek court approval for a sale process for the business to protect its brand and "further advance Tupperware's transformation into a digital-first, technology-led company. The Orlando, Florida-based firm said it would also seek approval to continue operating during the bankruptcy proceedings and would continue to pay its employees and suppliers.
The firm's shares were trading at $0.5099 Monday, well down from $2.55 in December last year. Tupperware said it had implemented a strategic plan to modernize its operations and drive efficiencies to ignite growth following the appointment of a new management team last year.
In its filing with the U.S. Bankruptcy Court for the District of Delaware, Tupperware listed assets of between $500 million and $1 billion and liabilities of between $1 billion and $10 billion. The filing also said it had between 50,000 and 100,000 creditors.
Tupperware lost popularity with consumers in recent years and an initiative to gain distribution through big-box chain Target failed to reverse its fortunes.
The company's roots date to 1946, when chemist Earl Tupper "had a spark of inspiration while creating molds at a plastics factory shortly after the Great Depression. Over time, Tupper's containers became popular that many people referred to any plastic food container as Tupperware. And people even threw "Tupperware parties" in their homes to sell the containers to friends and neighbors.
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