Tupperware Brands filed for bankruptcy in Delaware late Tuesday, succumbing to growing losses due to low demand for its once-popular colourful food storage containers, Cape {town} Etc reports.
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Its popularity skyrocketed in the 1950s, when women of the postwar generation hosted Tupperware parties at their homes to sell the containers as a means of empowerment and independence.
Tupperware parties were a huge success, and the firm decided to pull all of its products from retail stores.
The Tupperware Party became the company’s exclusive method of distribution.
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However, revenues have fallen in recent years as the company struggles to get more of its items into retail locations and online sales platforms. Tupperware has previously relied on independent sales reps to distribute its products, but the business claims that model is no longer effective in reaching current consumers.
According to Reuters, Tupperware plans to continue operations while conducting a 30-day bidding process to locate a buyer for the entire company.
While Tupperware made significant profits during lockdown, the post-pandemic increase in labour, freight and raw material costs such as plastic resin has put pressure on the company’s business.
The company’s stock experienced dramatic swings in 2023 during ‘meme stocks’ rallies, in which retail investors coordinate on social media and place wagers on faltering companies with high short interest.
According to bankruptcy documents, Tupperware’s assets are estimated to be between $500 million and $1 billion, and its liabilities range between $1 billion and $10 billion. It estimated the number of creditors to be between 50 001 and 100 000.
In 2023, the firm reached an agreement with its lenders to restructure its financial obligations and hired investment bank Moelis & Co to help explore strategic options.
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