Tupperware Manufacturers and a few of its subsidiaries have filed for Chapter 11 chapter safety and are in search of a purchaser, the meals container agency mentioned, after years of dwindling gross sales.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” president and CEO Laurie Ann Goldman mentioned in an announcement Tuesday asserting the chapter submitting.
“As a result, we explored numerous strategic options and determined this is the best path forward,” added Goldman.
The corporate mentioned it could search courtroom approval for a sale course of for the enterprise to guard its model and “further advance Tupperware’s transformation into a digital-first, technology-led company.”
The Orlando, Florida-based agency mentioned it could additionally search approval to proceed working through the chapter proceedings and would proceed to pay its workers and suppliers.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman mentioned.
The chapter announcement had been within the pipeline for a number of weeks. In mid-August, the group mentioned it continued to “face significant liquidity problems” and had doubts about its capability to proceed its exercise.
In its submitting with the US Chapter Courtroom for the District of Delaware, Tupperware listed property of between $500 million and $1 billion and liabilities of between $1 billion and $10 billion.
The submitting additionally mentioned it had between 50,000 and 100,000 collectors.
Tupperware shares closed at $0.5099 Monday, properly down from $2.55 in December final 12 months. Buying and selling in them was suspended on Tuesday.
‘Out of vogue
The 78-year-old firm turned well-known within the Fifties and 60s with its “Tupperware Parties,” the place buddies would collect with foods and drinks as an organization consultant demonstrated the gadgets.
Tupperware turned synonymous with hermetic plastic meals containers however its enterprise mannequin didn’t sustain with altering client calls for.
It was severely hit by the emergence of on-line commerce, the rise of meal deliveries and has additionally been a sufferer of customers turning to extra environmentally pleasant options.
“The party has been over for some time for Tupperware,” mentioned Susannah Streeter, head of cash and markets at Hargreaves Lansdown.
“Shifts in buyer behavior pushed its containers out of fashion, as consumers have started to wean themselves off addictions to plastics and find more environmentally conscious ways of storing food,” she mentioned.
The corporate has tried to adapt to modifications in consumption patterns by creating its on-line gross sales and getting into into distribution agreements with chain shops, however has been unable to halt its slide.
Tupperware mentioned it had applied a strategic plan to modernize its operations and drive efficiencies to ignite development following the appointment of a brand new administration group final 12 months.
“The Company has made significant progress and intends to continue this important transformation work.”
The corporate’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,” in line with Tupperware’s web site.
Tupperware loved a increase interval through the Covid-19 pandemic earlier than seeing its gross sales slide. In 2022, within the final annual outcomes revealed by the group, Tupperware reported a turnover of $1.3 billion, down 42 p.c on 5 years earlier.
“Its attempts to appeal to younger shoppers by selling in the US chain Target haven’t been as successful as hoped,” mentioned Streeter.
“There is still a chance a buyer for the business can be found, but with plastic seen as far from fantastic, among eco-aware consumers, revitalising the brand will be an uphill struggle.”
