Tupperware files for bankruptcy as its colorful containers lose relevance
Updates with detail from court documents in paragraphs 3, 4 and 6
By Savyata Mishra and Dietrich Knauth
Sept 18 (Reuters) -Tupperware Brands TUP.N filed for bankruptcy protection in Delawarelate on Tuesday, succumbing to mounting losses due to poor demand for its once popular colorful food storage containers.
Its popularity exploded in the 1950s as women of the post-war generation held "Tupperware parties" at their homes to sell the containers as they sought empowerment and independence.
However, its sales slumped in recent years as the company struggled to place more of its products in retail stores and online sales platforms. Tupperware has historically relied on independent sales representatives to move its products, but that strategy has failed to reach modern consumers, according to the company.
"Nearly everyone now knows what Tupperware is, but fewer people know where to find it," Tupperware Chief Restructuring Officer Brian Fox wrote in a court filing in the U.S. Bankruptcy Court for the District of Delaware. I
Tupperware last month raised doubts about its ability to remain in business after flagging bankruptcy risk several times due to liquidity constraints.
The company has $812 million in debt, much of which was purchased by distressed debt investors at a deep discount in July, according to court filings. Those new lenders had sought to use their debt position to seize Tupperware assets including its intellectual property such as its brand, pushing to the company to seek bankruptcy protection, Tupperware said.
The company intends tocontinue operationsand conduct a 30-day bidding process to find a buyer for the entire company.
"Even with a recently restructured balance sheet and a temporary financial boost, Tupperware's high leverage, declining sales and shrinking profit margins were too much to overcome," said James Gellert, executive chairman at financial analytics firm RapidRatings.
The company has been trying to turn its business around for years after reporting several quarters of falling sales.
A post-pandemic jump in the costsof labor, freight and raw materials such as plastic resin also pressured its business.
The company's stock saw wild swings in 2023 amid "meme stocks" rallies, in which retail investors coordinate on social media and focus their bets on struggling companies with high short interest.
Tupperware has $500 million to$1 billion in estimated assets and $1 billion to$10 billion in estimated liabilities, according to bankruptcy filings. It listed the number of creditors to be between 50,001 and 100,000.
The company had in 2023 finalized an agreement with its lenders to restructure its debt obligations and signed investment bank Moelis & Co to help explore strategic options.
TIMELINE-Tupperware - from a US household brand to an indebted kitchenware maker nL4N3L00XC
Reporting by Disha Mishra and Anuja Bharat Mistry in Bengaluru and Dietrich Knauth in New York; Additional reporting by Savyata Mishra; Editing by Sriraj Kalluvila, Nivedita Bhattacharjee, Alexia Garamfalvi and David Gregorio
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
