(RightIsRight.co) – In a concerning turn of events, the iconic American brand Tupperware and some of its affiliates announced in a statement that they have filed for Chapter 11 bankruptcy protection.
Famous for its iconic food storage containers, Tupperware has struggled with declining sales in recent years.
Last year, the company, which trades on the New York Stock Exchange, warned of “substantial doubt” about its ability to keep going due to its poor financial state.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” said Laurie Ann Goldman, Tupperware’s president and CEO.
“As a result, we explored numerous strategic options and determined this is the best path forward,” Goldman added.
Moreover, the company said it would seek court approval to start a sale process to protect its brand and “further advance Tupperware’s transformation into a digital-first, technology-led company.”
Based in Orlando, Florida, the iconic brand also plans to continue operating during the bankruptcy proceedings and continue to pay its employees and suppliers.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman added.
In addition, Tupperware claimed it had already started a plan to modernize its operations and boost efficiency after bringing in a new management team last year.
In its bankruptcy filing with the U.S. Bankruptcy Court for the District of Delaware, Tupperware listed assets between $500 million and $1 billion and liabilities between $1 billion and $10 billion. The filing also stated it had between 50,000 and 100,000 creditors.
Known for its airtight plastic containers, Tupperware has struggled to maintain its place in the market in recent years. A recent attempt to sell products through Target stores did not revive its fortunes.
According to the company’s website, Tupperware’s history goes back to 1946, when chemist Earl Tupper “had a spark of inspiration while creating molds at a plastics factory shortly after the Great Depression.”
Tupper’s plastic containers later became popular through “Tupperware Parties,” where friends would gather for food and drinks as a company representative showcased the products.
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