Tupperware Brands prepares for bankruptcy filing

Tupperware Brands, the iconic food storage company, is on the brink of filing for bankruptcy. This move comes after years of struggling to revitalise its business in the face of declining demand.

Transaction snapshot

• Deal value: N/A

• Deal multiples: N/A

• Deal type: Potential bankruptcy filing

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Tupperware is expected to file for court protection as early as this week, according to sources familiar with the matter. The company has already breached its debt terms and brought in legal and financial advisers to assist with the process.

The news had an immediate impact on the market, with Tupperware's shares plummeting by over 50% in New York trading.

The company's financial woes stem from its struggle to manage more than US$700 million in debt. Despite lenders agreeing to provide some leeway on violated loan terms earlier this year, Tupperware's financial situation has continued to worsen.

Tupperware has been open about its financial struggles for years, regularly expressing doubt about its ability to continue operations. In June, the company announced plans to close its only US factory, resulting in nearly 150 job losses.

In an attempt to turn the business around, Tupperware replaced CEO Miguel Fernandez and several board members last year. Laurie Ann Goldman was appointed as the new CEO to lead the company's revival efforts.

Founded in 1946, Tupperware revolutionised food storage with its airtight plastic containers. The brand gained popularity through its unique direct sales model, which relied on home parties hosted by suburban women.

Despite changes in retail trends, Tupperware has maintained its direct sales approach. As of 2022, the company reported having more than 300,000 independent salespeople in its network.

While bankruptcy preparations are underway, it's worth noting that plans may still change. Tupperware has not officially commented on the situation.