Tupperware Files for Chapter 11 Bankruptcy Protection
The iconic food container manufacturer, Tupperware, and some of its subsidiaries have filed for Chapter 11 bankruptcy protection in the United States. The company has struggled with declining sales after a surprise surge during the COVID-19 pandemic, when people stuck at home turned to cooking and increased demand for Tupperware's colorful, flexible-seal plastic containers.
The rise in raw material costs and shipping expenses after the pandemic, as well as increased salaries, have also hurt Tupperware's results. Last year, the company warned about its ability to continue operating due to its poor financial situation, severely impacted by a challenging macroeconomic environment.
Tupperware is seeking court approval for a sale process to protect its brand and advance its transformation into a technology-driven and digital company. The company has stated that it will also request permission to continue operating during the bankruptcy procedure and will continue to pay its employees and suppliers. A strategic plan to modernize its operations and achieve efficiency gains has been put in place.
Tupperware has lost popularity with consumers in recent years. The company's origins date back to 1946, when chemist Earl Tupper had the brilliant idea to create molds in a plastic factory after World War II to design a hermetic seal for plastic storage containers. The goal was to help families affected by the war save money on expensive food waste. Over time, these containers became popular. But today, nothing can resist the crisis.
