Tupperware Brands files for bankruptcy as company’s recovery efforts falter; stock loses 55% in 5 sessions

Tupperware Brands announced that the company is voluntarily filing for bankruptcy. The company stated that along with its subsidiaries, the company has initiated Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware. Shares of the company have lost over 55% in the past 5 trading sessions.

The company stated that it would seek approval from the court to operate during the bankruptcy proceedings while providing products through its sales consultants, retail partners, and online stores. Tupperware is also looking for the court’s approval to sell the business in order to protect the brand.

The move comes after the company appointed a new management that implemented a strategic plan to help the company expand its omnichannel presence along with boosting efficiency and modernising operations. Although the company made some progress, it was unable to perform well financially due to the macroeconomic environment.

Laurie Ann Goldman, president and chief executive officer of Tupperware, said that the poor financial performance over the past few years resulted in the company determining that filing for bankruptcy was the best path for the business.

“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 said.

Tupperware, a subsidiary of Tupperware Brands, was founded in 1946. The company is a renowned company that designs and manufactures containers for home and kitchen use. Despite being a popular brand in the space, it was impacted significantly due to the COVID-19 pandemic.

Although the company made several efforts to regain ground, its finances and sales were unable to pick up. In June 2024, the company announced that it would close its South Carolina manufacturing facility. In the next month, the company’s chief financial officer Mariela Matute announced her official resignation from the company.

Shares of the company have declined by nearly 74% since the beginning of the year. The stock has lost over 76% in the past year.