Iconic food storage brand Tupperware has officially filed for bankruptcy. The beloved food storage brand filed for Chapter 11 bankruptcy in the United States after a drastic drop in its demand.
Despite sales booming in the pandemic, the company raised "substantial doubt" about its ability to keep its operations going.
"Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment," said Laurie Ann Goldman, the president and CEO of Tupperware in an official statement.
Tupperware Was 'Trying To Revive' Since 2020
The kitchenware company witnessed a short-lived demand during the COVID-19 pandemic due to the lockdown lifestyle and uptick in home cooking.
However, as the pandemic ended, Tupperware noted a spike in raw material costs and increased labour and freight costs, further making a hole in the company's margins.
After filing for bankruptcy, Tupperware shared it will seek court approval to continue operations during its bankruptcy proceedings and a sale process to protect its brand.
For the past four years, your favourite kitchenware brand has been trying to revive its sales. However, Tupperware reported a fall in sales for six successive quarters since the third quarter of 2021.
One of the reasons for this was the impact of inflation on its low and mid-income consumer base.
Origins Of Tupperware
Tupperware's history goes back to 1946, shortly after the Great Depression. The kitchenware brand came into existence after chemist Earl Tupper "had a spark of inspiration while creating moulds at a plastics factory."
The brand went on to create entrepreneurial opportunities for women and was sold in over 100 countries for the past seven decades.
