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Sep 18, 2024 at 10:25 AM
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In difficulty for years, the American manufacturer of the famous plastic (and glass) food containers Tupperware announced this Wednesday, September 18, 2024, that it had launched bankruptcy proceedings.
“For several years, the company’s financial situation has been severely affected by a difficult macroeconomic environment” said Laurie Ann Goldman, CEO of the company, which has filed for Chapter 11 bankruptcy protection.
The group will pay its employees during the procedure
“We therefore explored several strategic options and determined” that filing for bankruptcy protection was “the best outcome” because it should “provide us with essential flexibility” for the digital and technological transformation of our company, the CEO explains in the bankruptcy filing documents.
The Orlando, Florida-based group wants to continue working during the procedure and plans to continue paying its employees and suppliers, Goldman added.
In documents filed with the U.S. Deleware Bankruptcy Court, Tupperware estimates its assets (estate) at between $500 million and $1 billion, and its liabilities (capital and debts) at between $1 billion and $10 billion. It also lists between 50,000 and 100,000 creditors. Launched in 1946, Tupperware had become a social phenomenon, entering millions of American homes and beyond thanks to the efficiency of its network of representatives.
Weakened by online commerce
Initially launched in stores, its plastic boxes with airtight lids to preserve food for longer did not sell well. The company then came up with the principle of ” Tupperware meetings“, demonstrations carried out at the home of a representative for a group of potential buyers.
In 2017, the company founded by American inventor Earl Tupper still had more than three million of these ambassadors worldwide.
Tupperware has been weakened by the emergence of online commerce, meal delivery and single-use plastic, which have challenged its model.
The company has tried to adapt by expanding its online sales and entering into distribution agreements with chain stores, but has been unable to halt its slide.
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