Tupperware, a longstanding name in food storage since 1946, has filed for Chapter 11 bankruptcy protection in Delaware. The company seeks court approval to continue its operations while pursuing a potential sale of the business.
Citing a challenging economic landscape, Tupperware has faced significant financial difficulties, accumulating over $1.2 billion in debt against $679.5 million in assets. The company has experienced a staggering 75% drop in its stock value this year. In response to these challenges, Tupperware appointed a new management team last year and launched a strategic plan aimed at modernizing operations and enhancing its omnichannel business model.
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The bankruptcy process is intended to provide Tupperware with the flexibility needed to transform into a digital-first, technology-led company better equipped to serve its stakeholders.
Despite the bankruptcy filing, Tupperware assured that its independent sales consultant agreements would remain intact, and it will continue to pay employee wages and benefits as well as compensate vendors and suppliers under normal terms, pending court approval.
Source: www.hfndigital.com