Brand in financial crisis citing declining sales, competition and decline of direct-to-consumer marketing.
Tupperware Brands, the Orlando, Florida-based consumer goods company that produces the iconic line of containers has filed for bankruptcy. The company said it was seeking Chapter 11 bankruptcy protection after struggling to revitalize its core business and failing to secure a tenable takeover offer.
The company said in its bankruptcy filing that consumers shifting away from direct sales, which make up the vast majority of its sales more than a quarter-century after the first Tupperware parties, has hit the storied business hard.
The company also cited growing public health and environmental concerns about plastic, internal inefficiencies that made it challenging to operate globally, and the challenging microeconomic environment of the last several years for its financial straits.
Tupperware said it planned to continue operating during the bankruptcy proceedings and would seek court approval for a sale in order to “protect" the brand.
In a statement, Tupperware President and CEO Laurie Ann Goldman acknowledged Tupperware's recent financial struggles and said that the bankruptcy process is meant to provide “essential flexibility” as the company pursues this transformation. The brand, she maintains, isn't going anywhere.
“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,” Goldman said in a statement. “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”
Tupperware reported more than $1.2 billion in total debts and $679.5 million in total assets. It said Tupperware currently employs more than 5,450 employees across 41 countries and partners with over 465,000 consultants who sell products on a freelance basis in nearly 70 countries. Particularly in India, Tupperware was introduced as a way for women to own their own businesses.
Tupperware's roots date to 1946. As the company tells it, chemist Earl Tupper found inspiration while creating molds at a plastics factory. He set out on a mission to create an airtight lid seal similar to the one on a paint can for a plastic container to help families save money on food waste.
(Source: AP)
