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Tupperware Brands and some of its subsidiaries have filed for Chapter 11 bankruptcy in the US.
Known for its colourful, airtight food storage containers that made the brand a household name in Australia, Tupperware cited declining sales for its bankruptcy.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Laurie Goldman, President and Chief Executive of Tupperware, said in a press release.
“As a result, we explored numerous strategic options and determined this is the best path forward.
“This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders.”
Chapter 11 bankruptcy in the United States is a legal process that allows businesses or individuals to reorganise their debts while continuing operations.
It provides the debtor with a chance to create a plan to repay creditors over time, often with modified terms.
Unlike Chapter 7 bankruptcy where assets are liquidated, Chapter 11 focuses on restructuring to enable the debtor to regain financial stability.
Ms Goldman did acknowledge this in her statement and assured consumers that this isn’t the end of Tupperware.
“Tupperware will seek court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online,” she said.
“Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family,” she continued.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”
Tupperware was first founded in 1942 by Earl Tupper.
The brand only became extremely popular in the 1950s though thanks to ‘Tupperware Parties’.
Pioneered by Brownie Wise, who developed the direct sales model for Tupperware, these parties consisted of a host demonstrating and selling Tupperware products, typically in a home setting, to their guests.
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