Investing.com-- Food storage maker Tupperware Brands Corporation (NYSE:TUP) filed for bankruptcy on late-Tuesday as the firm’s turnaround plan largely failed to shore up its business and as it grappled with a dire cash crunch due to lagging sales.
The firm filed for Chapter-11 bankruptcy proceedings in the District of Delaware, it said in a filing, and said it will seek court approval for a potential sale of its business. Tupperware also said it will seek approval to continue operating during the bankruptcy proceedings.
Bloomberg reported earlier this week that Tupperware was seeking bankruptcy protection after breaching the terms of its debt arrangements, and had brought in legal and financial advisers over potential options.
“Over the last several years, the Company's financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward,” Tupperware CEO Laurie Ann Goldman said in a statement.
Founded in 1946 by chemist Earl Tupper, the company saw a boost in sales through the COVID-19 pandemic as more families stayed home and cooked. But sales declined over the past two years as the world reemerged from the pandemic.
The company had warned in March that it was uncertain over its prospects as a going concern, and was facing a liquidity crunch.
The company had appointed a new management team last year and enacted a broad turnaround plan to cut costs and shore up business, although it now appeared to have made dwindling progress on that front.