Tupperware Brands Corp. Files for Chapter 11 Bankruptcy Protection

Tupperware Brands Corp. has filed for Chapter 11 bankruptcy protection due to declining demand, increased costs of raw materials, and labor. The company, which saw a temporary surge during the pandemic, has been struggling financially. It plans to turn business around and has enlisted help from legal and financial advisers.

Tupperware Brands Corp. and several subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, citing dwindling demand and escalating financial losses.

The company experienced financial challenges after a short-lived pandemic-driven demand for its products. Elevated raw material costs, particularly plastic resin, along with increased labor and freight expenses, have significantly impacted the company's margins. CEO Laurie Goldman highlighted the detrimental effects of the broader macroeconomic environment over recent years.

Following breaches in debt terms, Tupperware planned the bankruptcy protection action, listing estimated assets between $500 million to $1 billion and liabilities ranging from $1 billion to $10 billion. The U.S. Bankruptcy Court for the District of Delaware noted that creditors range between 50,001-100,000.

Despite efforts to revive its business post-2021, continuous sales declines persisted. In 2023, Tupperware reached an agreement to restructure its debt and enlisted investment bank Moelis & Co to explore strategic solutions.

(With inputs from agencies.)