The American group Tupperware, the famous manufacturer of plastic food containers and kitchen utensils, is launching bankruptcy proceedings on Wednesday, September 18. The day before, trading in Tupperware shares had been suspended on the New York Stock Exchange.
2 min
Millions of dollars in debt and liquidity problems. Faced with these financial difficulties, the manufacturer is asking for Chapter 11 protection under the American bankruptcy law. This will allow it to continue operating, while giving it time to seek an agreement with its creditors.
” In recent years, the company’s financial situation has been severely affected by a difficult macroeconomic environment. ” said Laurie Ann Goldman, the company’s CEO. Therefore, we explored several strategic options and estimated “that placing oneself under the bankruptcy protection law was” the best way out “, because it should ” bring us essential flexibility “to the digital and technological transformation of our society,” explains the CEO in the bankruptcy proceedings documents.
A declining popularity
The company’s difficult situation is not new. Since the 1950s, Tupperware has become known for the success of its famous meetings, a system of direct sales to homes.
But today, its popularity is on the decline. Tupperware products are no longer popular with the general public. The manufacturer suffers from its un-ecological image, faced with competitors producing eco-responsible containers.
Weakened by the rise of online commerce and unable to attract younger customers, the company will sink after the Covid crisis. In mid-August, the group explained that it was still ” facing significant liquidity problems ” and have ” doubts about his ability to continue his activity “.
In 2022, its turnover fell to $1.3 billion, a drop of almost 20%. And since that date, the group’s financial accounts have no longer been published.
Also readThe bankruptcy of the Sichuan Trust Fund is a symbol of the real estate crisis in China