Updated with the latest information.

Tupperware Brands Corp. and its subsidiaries have filed for Chapter 11 bankruptcy, as announced in a recent news release.

This bankruptcy filing occurs as demand for its famous food storage containers continues to decline, alongside increasing financial losses, according to reports from Reuters.

The company stated that it will seek court approval to keep operating during the bankruptcy process and aims to “continue offering customers its innovative and award-winning products.” Additionally, Tupperware plans to seek court approval to “initiate a sales process for the business to safeguard its renowned brand while progressing towards becoming a technology-driven, digital-first company.”

“In recent years, the difficult economic climate has greatly harmed the company’s financial situation. We thoroughly explored a range of strategic options and concluded that this is the most appropriate way forward,” commented Laurie Ann Goldman, President and CEO of Tupperware.

“We intend to keep providing our dedicated customers with the high-quality products they trust and love during this transition,” Goldman added.

Tupperware had been preparing for this bankruptcy filing after missing some debt obligations and hiring financial and legal advisors, as reported by Bloomberg on Monday.

The company did not respond to YSL News’ request for comments on Wednesday morning.

Company’s challenges returned after brief pandemic boost

After experiencing a temporary surge in demand during the pandemic—when more people cooked at home—the company is now facing ongoing difficulties. Rising costs of raw materials, such as plastic resin, along with increased expenses for labor and shipping have significantly impacted Tupperware’s profit margins, according to Reuters.

Last month, Tupperware raised concerns about its future viability after repeatedly highlighting its bankruptcy risk due to liquidity issues. The company has attempted to reverse its sales decline for several years.

Last year, Tupperware’s stock experienced significant volatility as it became associated with “meme stocks” rallies, in which retail investors on social media targeted financially troubled companies for speculative investments.

In August 2023, the company announced it had reached an agreement with its creditors to restructure its debt obligations.

Earlier in 2023, Tupperware expressed serious concerns about its financial future, stating in a regulatory filing that there was “substantial doubt” on its ability to continue operating and that financial advisors had been engaged to secure funding.

Concerns increased for Tupperware after the New York Stock Exchange warned in early 2023 that the company’s stock might be delisted due to the failure to submit its annual report for 2022. Tupperware indicated plans to file the report within 30 days but noted that “there is no guarantee” it would be completed on time.

At that time, the company mentioned it was evaluating various aspects of its operations, including cash management, real estate assets, and potential staff layoffs.

A Brief History of Tupperware

According to its website, Tupperware Brands was established in 1946 and is recognized as a “global consumer products” company that develops “innovative, practical, and environmentally responsible” items.

The first Tupperware products were introduced by chemist Earl S. Tupper in Massachusetts during the early 1940s after he had a “spark of inspiration” while working at a plastics factory shortly following the Great Depression.

Not long after, Brownie Wise organized the first-ever at-home Tupperware party, later becoming the Vice President of Marketing in the 1950s.

Contributions from: Jordan Mendoza, YSL News

Gabe Hauari is a national trending news reporter at YSL News. You can find him on X @GabeHauari