Sept 17 (Askume) – Tupperware Brands TUP.N and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday as losses mounted amid a drop in demand for its once-popular colourful food storage containers.
The company has struggled to halt a decline in sales after a brief surge during the pandemic as people cooked more at home and used airtight plastic containers to store leftovers.
The rise in key raw materials such as plastic resins, as well as labour and freight costs following the pandemic, have further eroded the company’s profit margins.
In August, Tupperware raised significant questions about its ability to continue as a going concern for the fourth time since November 2022 and said it faced a liquidity shortfall.
The company expects to have assets of $500 million to $1 billion and estimated liabilities of $1 billion to $10 billion, according to its bankruptcy filing in the U.S. Bankruptcy Court in Delaware.
Bloomberg reported on Monday that Tupperware was planning to apply for bankruptcy protection after violating the terms of its loan and had hired legal and financial advisers.
The bankruptcy preparations began after lengthy negotiations with creditors over more than $700 million, the report said.