Tupperware Brands Corporation says it has filed for Chapter 11 bankruptcy protection in order to facilitate a sale process and protect the brand’s future.
The kitchenware brand plans to enter court protection after it breached the terms of its debt and enlisted legal and financial advisers, Bloomberg cited people with knowledge of the matter in an earlier report.
The bankruptcy preparations follow protracted negotiations between the company and its lenders over how to manage more than $700 million in debt, according to the report.
The company’s shares were down 57 per cent at the end of Monday’s trading prior to confirmation of the voluntary Chapter 11 filing.
Founded in 1946 by Earl Tupper, Tupperware is known for its problem-solving kitchen and home products, which are distributed to more than 80 countries.
The company witnessed a surge in sales during the Covid-19 pandemic but lost its momentum as the world reopened.
In an announcement released in March, Tupperware said it was not certain its business could continue as a going concern, citing a liquidity problem. The company received a delist warning from the NYSE in the following month after delaying its financial report for FY23.
In a statement issued by the company on Tuesday night, the company said it had made “significant progress” on its transformation and restructuring program, which will continue throughout the bankruptcy process. That plan has focused on modernizing its operations, bolstering its omnichannel capabilities and driving efficiencies to ignite growth.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” said CEO Laurie Ann Goldman.
“As a result, we explored numerous strategic options and determined this is the best path forward. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders,” she continued.
“We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”
