Tupperware files for bankruptcy protection as demand slumps for its colorful containers (updated)

Tupperware Brands

18/09/2024 05:01

(Adds details, background from paragraph 2 onwards)
       Sept 17 (Reuters) - Tupperware Brands  TUP.N  and some
of its subsidiaries filed for Chapter 11 bankruptcy protection
on Tuesday, succumbing to declining demand for its once-popular
colorful food storage containers and ballooning losses.
    The company's struggles to stem the drop in sales resumed
after a brief surge during the pandemic when people cooked more
at home and turned to its airtight plastic containers to store
leftovers.
   The post-pandemic jump in costs of critical raw materials
such as plastic resin, as well as labor and freight further
dented the company's margins.
    In August, Tupperware had raised substantial doubt about its
ability to continue as a going concern for the fourth time since
November 2022 and said it faced a liquidity crunch. 
    The company listed $500 million to $1 billion in estimated
assets and $1 billion-$10 billion in estimated liabilities,
according to bankruptcy filings in the U.S. Bankruptcy Court for
the District of Delaware.
    Tupperware has been planning to file for bankruptcy
protection after breaching the terms of its debt and enlisting
legal and financial advisers, Bloomberg reported on Monday. 
    The report said the bankruptcy preparations began following
prolonged negotiations with lenders over the more than $700
million in debt.

 (Reporting by Disha Mishra and Anuja Bharat Mistry in
Bengaluru; Editing by Sonia Cheema)
 ((Disha.Mishra@thomsonreuters.com;))