Battling falling sales and debt, the ‘King of the Kitchen’ Tupperware filed for bankruptcy

Battling falling sales and debt, the 'King of the Kitchen' Tupperware filed for bankruptcy

There was a time when in almost every household kitchen at least one lunch box or water bottle or container would be seen with ‘Tupperware’ written on it, i.e. Tupperware used to be a household name, but now due to continuous decline in sales and debt, the condition of the company has deteriorated so much that it and some of its subsidiary companies have filed for bankruptcy in the United States. According to media reportsTupperware, which is in debt of about US $ 700 million i.e. approximately ₹ 5858.63 crores, filed for bankruptcy on Tuesday after its sales reached the bottom.

Laurie Ann Goldman, Tupperware’s chairman and CEO, said, “The company’s financial condition has been adversely affected by the challenging economic environment over the past few years… As a result, after exploring a number of strategic options, we have determined this is the best path forward… This process will provide us with the flexibility we need to pursue a variety of strategic options to continue our journey towards becoming a digital-first, technology-led company that is better positioned to serve all our stakeholders…”

According to Laurie Ann Goldman, the company’s condition deteriorated the most during the coronavirus and the COVID pandemic that spread from it, and the company has not yet recovered from those shocks. The company’s sales declined drastically during and after COVID. Even after that period, the company was affected by the rise in the prices of raw materials and the increase in wages and freight.

According to a Bloomberg report, the company, which has business spread across more than 70 countries around the world, was founded in 1946 by Earl Tupper, and the total wealth of Tupperware is estimated to be between 50 and 1 billion US dollars, while the company currently has a debt of more than 700 million US dollars, after which a bankruptcy petition has been filed.

It is worth noting that Tupperware had warned in the year 2023 itself that if the arrangement for repaying the loan is not made, then an application for bankruptcy can be filed. According to media reports, now the company is also in talks with its creditors, so that it can be decided that along with bankruptcy, arrangements can be made for managing the loan.



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