Due to Low Sales Product, Tupperware Files for Bankruptcy

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Nakamura Incident of 1946", "Creativity in Assembling Television Brings Male Graduates from Elementary School to Jail", you may read also "Be Careful Using AI, You Will be in Trouble for Citing Non-existent Jurisprudence" and on this occasion we will discuss about 'Due to Low Sales Product, Tupperware Files for Bankruptcy'.

Tupperware Brands Corp filed for bankruptcy after the famous by colorful food box company experienced a decline in sales. The brand from the United States (US) filed for Chapter 11 bankruptcy protection on Tuesday (17/9/2024). Not only that, several subsidiaries included in Tupperware Brands Corp are also included in bankruptcy protection. Tupperware's business journey had been stumbling in the last few years before the pandemic. However, the company recovered due to the Covid-19 pandemic, when some people decided to stay at home and this increased demand for airtight plastic containers.[1]

One of the reasons Tupperware went bankrupt was the surge in raw material costs, such as plastic receipts, labor costs, product delivery. This puts pressure on the profit margins of the food box manufacturers. Tupperware Brands Corp CEO Laurie Ann Goldman said Tupperware plans to file for bankruptcy protection after violating debt terms and seeking help from legal and financial advisors. "Over the last few years, the company's financial position has been greatly affected by the challenging macroeconomic environment," he said, quoted from an official statement, Wednesday (18/9/2024).[2]

Based on the bankruptcy filing in the US Bankruptcy Court for the District of Delaware, Tupparware listed assets worth US$ 500 million to US$ 1 billion and liabilities worth US$ 1 billion to US$ 10 billion. Tupperware has continued to try to turn around its business situation over the last four years, after reporting sales declines for six consecutive quarters, since the third quarter of 2021. This decline occurred due to high inflation, which continues to weaken low-income and middle-class consumers. In 2023, Tupperware completed an agreement with lenders to restructure debt obligations and signed investment bank Moelis & Co to assist in the exploration of strategic alternatives.[3]

Tupperware is also closing its only US factory in 2024, located in South Carolina. This closure resulted in the termination of employment (PHK) of 148 people. The Tupparware brand, which was founded in 1946 or is 78 years old, has become a brand in world households. However, the brand is now less popular among young consumers. This is one of the reasons for the decline in demand for these legendary food boxes.[4] And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

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E-mail: mahmudkusuma22@gmail.com

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References:

1. "Setelah 78 Tahun, Produsen Kotak Makanan Tupperware Bangkrut", www.beritasatu.com., Alfi Dinilhaq, Rabu, 18 September 2024, Diakses pada tanggal 21 September 2024, Link: https://www.beritasatu.com/ekonomi/2842927/setelah-78-tahun-produsen-kotak-makanan-tupperware-bangkrut

2. Ibid.

3. Ibid.

4. Ibid.