Food storage manufacturer Tupperware Brands Corporation (NYSE:) has filed for bankruptcy, citing a failed turnaround plan and a severe cash crunch resulting from declining sales. The company submitted the Chapter-11 bankruptcy petition in the District of Delaware and intends to seek court approval for a potential sale of its operations. Tupperware also plans to request authorization to continue its business operations during the bankruptcy process.
According to a report by Bloomberg, Tupperware sought bankruptcy protection after violating the terms of its debt agreements and engaging legal and financial advisors to explore options. Tupperware CEO Laurie Ann Goldman stated, “Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward.”
Established in 1946 by chemist Earl Tupper, Tupperware experienced a surge in sales during the COVID-19 pandemic as more households stayed home and cooked. However, sales dwindled in the past two years as the world began to recover from the pandemic. In March, the company expressed uncertainty about its future as a going concern and faced a liquidity crisis.
Despite appointing a new management team and implementing a comprehensive turnaround plan to reduce expenses and strengthen its operations, Tupperware’s progress in these efforts appeared to be diminishing.