Once popular for its colorful food storage containers, US firm Tupperware has filed for bankruptcy. The company succumbed to a plummeting demand for its products.Tupperware Brands Inc. and some of its subsidiaries on Tuesday filed for Chapter 11 bankruptcy protection in the United States amid dwindling demand for its once-iconic food storage containers.
"Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment," president and CEO Laurie Ann Goldman said in a statement. Last year, the company raised "substantial doubt" about its ability to keep operating amid its poor financial position. Long-drawn struggles Tupperware witnessed a short-lived boost during the coronavirus pandemic when home cooking fueled demand for its trademark colorful, airtight plastic containers. After the pandemic, a spike in raw material costs, along with increased labor and freight costs, further made a hole in the company's margins.
The firm has been trying to revive its business for nearly four years. It reported a fall in sales for six successive quarters since the third quarter of 2021, as inflation continued to hinder its low and mid-income consumer base. On Tuesday, Tupperware said it would seek court approval to continue operations during bankruptcy proceedings. It added that it would also seek approval for a sale process for the business to protect its brand. According to the company's website, Tupperware's history goes back to 1946 — shortly after the Great Depression — when chemist Earl Tupper "had a spark of inspiration while creating molds at a plastics factory." "If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste," the website says. dvv/sms (Reuters, AFP)
The firm has been trying to revive its business for nearly four years. It reported a fall in sales for six successive quarters since the third quarter of 2021, as inflation continued to hinder its low and mid-income consumer base. On Tuesday, Tupperware said it would seek court approval to continue operations during bankruptcy proceedings. It added that it would also seek approval for a sale process for the business to protect its brand. According to the company's website, Tupperware's history goes back to 1946 — shortly after the Great Depression — when chemist Earl Tupper "had a spark of inspiration while creating molds at a plastics factory." "If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste," the website says. dvv/sms (Reuters, AFP)