Tupperware brand files for bankruptcy as demand for products slides

dailyrecord.co.uk:

Popular food storage brand Tupperware has filed for bankruptcy.The 78-year-old firm and some of its subsidiaries will be included in the bankruptcy filing in the US, citing rising production costs as well as a slump in sales.

The company has said they will ask for court permission to start a sale process of the business, and aims to continue operating during the proceedings, BBC News reports.Just last year, the company warned that they were facing going bust unless they could raise new funding.Despite being a once household name, the company has struggled in recent years to reposition itself to a younger audience.Tupperware’s chief executive Laurie Ann Goldman said in a statement to investors: “Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment.”With cheaper competitive items available, the company has been struggling for years, with shares falling more than 50% this past week.

From a high of more than $100 a share in 2013, the company saw prices drop to around $1.20 a share last week. After proceedings were announced, share prices plummeted to just $0.50.A brief surge in popularity during the pandemic was, unfortunately, not enough to sustain long-term stability.The rising cost of raw materials, higher wages and transportation costs have also eaten into its profit margins.Founded in 1946 by Earl Tupper, who patented the containers' flexible airtight seal, the box company was once a major innovation, as one of the first companies to use new plastic to keep food fresh for longer.

The product became a household staple at a time when refrigerators were still too expensive for many families.Pioneering saleswoman Brownie Wise developed the