The company that makes food storage containers declared its intention to carry on with operations and that it will need court approval before beginning a business sale.
Many people use the 78-year-old company’s name to refer to any old plastic container since it has become so synonymous with food storage.
It hasn’t been able to differentiate itself from rivals even after making recent efforts to modernize its offerings and appeal to a younger market.
The company issued a warning last year, threatening to go bankrupt if it couldn’t raise fresh money fast.
This week, the company’s shares have dropped more than 50% in response to rumors that it was considering declaring bankruptcy.
Demand continued to decline for the company during the epidemic, despite a small spike in sales as more individuals cooked at home.
Moreover, rising labor, raw material, and transportation costs have affected its profit margins.
Tupperware’s CEO, Laurie Ann Goldman, informed investors in a statement that “the company’s financial position has been severely impacted by the challenging macroeconomic environment over the last several years.”
Earl Tupper, who created the flexible airtight closure of the containers, founded Tupperware in 1946.
Tupperware was a significant invention because it used novel plastics to extend the shelf life of food, which was useful when doing it.
