Why Tupperware is filing for bankruptcy

Transcription:

Conway Gittens: I’m Conway Gittens, reporting from the New York Stock Exchange. Here’s what we’re watching today on TheStreet.

With interest rates falling, housing is in the spotlight. Mortgage applications rose 14.2% in the week ended Sept. 13, according to the Mortgage Bankers Association. MBA’s weekly survey also showed the average 30-year fixed rate at 6.15 percent over that period, which is the lowest mortgage rate in 2 years — and a full percentage point drop from since a year ago. Meanwhile, the Commerce Department announced that new single-family home construction rose nearly 16 percent in August. The supply of new homes is now near highs not seen since 2008.

Related: Iconic housewares brand ready to file for Chapter 11 bankruptcy

Moving on to another business headline: Tupperware, the once iconic brand that turned mid-century housewives into entrepreneurs, has filed for bankruptcy.

At one point, the Tupperware name was so recognizable as a brand that it became a substitute for any plastic food container; similar to what Kleenex was to facial tissue and Band-Aid was to self-adhesive bandages.

But the brand has struggled for years as growing environmental awareness has placed its use of plastic in a negative light. Rivals have succeeded in making containers cheaper and more environmentally acceptable. More recently, it has also suffered from higher labor and raw material costs.

In a statement, CEO Laurie Goldman said: “Over the past several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.”

According to the bankruptcy court filing, Tupperware has assets estimated between $500 million and $1 billion, while its liabilities are estimated at $10 billion.

That will do for your daily briefing. From the New York Stock Exchange, this is Conway Gittens with TheStreet.

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