In difficulty for years, the American manufacturer of the famous plastic food containers Tupperware announced on Wednesday September 18 that it had launched bankruptcy proceedings.
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Tupperware Group has not published its accounts since 2022. Photo: AFP/VNA/CVN
“Over the past few years, the company’s financial position has been severely impacted by a difficult macroeconomic environment,” said Laurie Ann Goldman, CEO of the company, which has filed for Chapter 11 bankruptcy protection.
“We therefore explored several strategic options and considered” that filing for bankruptcy protection was “the best outcome” because it should “provide us with essential flexibility” for the digital and technological transformation of our company, the CEO explains in the bankruptcy proceedings documents.
The Orlando, Florida-based group wants to continue working during the procedure and plans to continue paying its employees and suppliers, Ms. Goldman added.
In documents filed with the U.S. Deleware Bankruptcy Court, Tupperware estimates its assets (estate) at between $500 million and $1 billion, and its liabilities (capital and debts) at between $1 billion and $10 billion. It also lists between 50,000 and 100,000 creditors.
On Tuesday, September 17, trading in Tupperware shares was suspended on the New York Stock Exchange.
Hundreds of millions of dollars in debt
In mid-August, the group explained that it was still “facing significant liquidity problems” and had “doubts about its ability to continue its activity”.
Tupperware has been burdened for several years by several hundred million dollars of debt and had already had to restructure its financial commitments for the first time, in 2020.
The group has not published its accounts since 2022, when its turnover fell to USD 1.3 billion, 42% less than five years earlier.
Launched in 1946, Tupperware had become a social phenomenon, entering millions of American homes and beyond through the efficiency of its network of representatives.
Initially launched in stores, its plastic containers with airtight lids to keep food fresh for longer did not sell well.
The company then came up with the idea of ”Tupperware meetings”, demonstrations held at the home of a representative for a group of potential buyers.
In 2017, the company founded by American inventor Earl Tupper still had more than three million of these ambassadors worldwide.
Tupperware has been weakened by the emergence of online commerce, meal delivery and single-use plastic, which have challenged its model.
The company has tried to adapt by expanding its online sales and entering into distribution agreements with chain stores, but has been unable to halt its slide.
AFP/VNA/CVN