Tupperware files for bankruptcy: An era comes to an end

The long-established household goods manufacturer Tupperware Brands Corporation filed for bankruptcy late Tuesday after a comprehensive restructuring plan did not achieve the hoped-for success and the company suffered from a severe liquidity shortage. The Tupperware brand world will be reorganized under a Chapter 11 proceeding in the U.S. state of Delaware. The aim is to obtain court approval for a possible sale of the company and to continue business operations during the bankruptcy proceedings. Earlier this week, Bloomberg reported that Tupperware was seeking bankruptcy protection due to violations of its debt covenants and had enlisted legal and financial advisors to explore various options. "In recent years, our financial position has been heavily impacted by the challenging macroeconomic environment. Therefore, we have explored numerous strategic options and decided that this is the best path forward," said Laurie Ann Goldman, CEO of Tupperware, in a statement. Founded in 1946 by chemist Earl Tupper, the company experienced a sales surge during the COVID-19 pandemic as more families cooked at home. However, sales have declined over the past two years as people have resumed activities outside the home. As early as March, the company warned that its future as a going concern was uncertain and it lacked liquidity. Last year, Tupperware installed a new management team and initiated a broad restructuring plan to cut costs and stabilize the business. However, these measures apparently failed to achieve the desired progress.