Tupperware files for bankruptcy as turnaround plan falls through Investing.com

Investing.com– Food storage maker Tupperware Brands Corporation (NYSE: ) filed for bankruptcy late Tuesday as the company’s turnaround plan largely failed to shore up its business and it faced a cash crunch due to delayed sales.

The firm has filed for Chapter 11 bankruptcy in the District of Delaware, it said in a filing, and said it will seek court approval for a potential sale of its business. Tupperware also said it would seek approval to continue operating during bankruptcy proceedings.

Bloomberg reported earlier this week that Tupperware is seeking bankruptcy protection after breaching the terms of its debt covenants and calling in legal and financial advisers for possible options.

“Over the past several years, the Company’s financial position has been severely affected by the difficult macroeconomic environment. As a result, we have explored numerous strategic options and determined that this is the best path forward,” Tupperware CEO Laurie Ann Goldman said in a statement.

Founded in 1946 by chemist Earl Tupper, the company saw sales surge through the COVID-19 pandemic as more families stayed home and cooked. But sales have fallen over the past two years as the world has recovered from the pandemic.

The company warned in March that it was uncertain about its business prospects and was facing a liquidity crunch.

The company appointed a new management team last year and adopted a sweeping turnaround plan to cut costs and shore up the business, although it now appeared to have made diminishing progress on that front.