Tupperware Brands files for bankruptcy after years of weak sales

By Jiahui Huang

Tupperware Brands, the iconic food-storage company known for its resealable plastic containers and pioneering direct-to-consumer sales, has filed for bankruptcy after years struggling with weak sales.

Tupperware and certain subsidiaries have voluntarily initiated chapter 11 proceedings in the U.S. Bankruptcy Court in Delaware, it said Tuesday, adding that it will seek court approval to continue operating and to facilitate a sale process to protect its brand during the proceedings.

"Over the last several years, the Company's financial position has been severely impacted by the challenging macroeconomic environment," Chief Executive Laurie Ann Goldman said.

Tupperware was founded in 1946 by Earl Tupper, a chemist who designed iconic airtight plastic containers to help families save money in the postwar era. For decades it was a household name, not just for its containers but also for its direct-sales marketing to homes, with an army of independent dealers showing off products at so-called "Tupperware parties."

But in recent years, it has faced continued liquidity challenges, increased competition and weakening demand for its flagship plastic products.

In March, Tupperware delayed filing its 2023 annual earnings report, due to a shortage of accountants and internal control issues. In June, the company said it was going to close its only factory in the U.S. and lay off nearly 150 employees.

Last year, the company made changes to its core management team and appointed Laurie Ann Goldman as CEO to help turn around the company, replacing Miguel Fernandez.

In its latest quarterly report, Tupperware reported revenue of $259.6 million for the quarter ended Sept. 30, 2023, down 14% compared with a the same period a year earlier. Its net loss was $55.8 million for the quarter.

Tupperware's shares (TUP) have lost about 75% year to date.

Write to Jiahui Huang at jiahui.huang@wsj.com

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-18-24 0530ET

Copyright (c) 2024 Dow Jones & Company, Inc.