Tupperware seeks bankruptcy protection as demand for colorful packaging declines in e-commerce era

Tupperware Brands Corporation (NYSE:TUP) announced yesterday that it and certain of its subsidiaries have voluntarily filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.

The company said in its filing that while its direct selling business model had been successful for years, its historical strength had waned over time in recent times.

The company’s focus on a direct sales strategy required the development of a multi-channel strategy and even the creation of a modern e-commerce structure to support its sales force.

As we read in the document, the deterioration in operating results will put pressure on the company’s capital structure until the end of 2022.

“The Company’s financial condition has deteriorated significantly over the past several years due to a challenging macroeconomic environment,” said Laurie Ann Goldman, president and CEO of Tupperware.

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Tupperware plans to seek court permission to continue operating throughout the proceedings and will continue to deliver its products through Tupperware sales consultants, retail partners and online channels.

The company will also seek court approval to begin the sale of its business to protect its brand and further its transformation into a digital and technology-driven organization.

Goldman said the firm is considering various strategic options and has concluded that pursuing this path will provide it with the necessary flexibility to transform into a technology- and digital-first organization that is better prepared to serve its stakeholders.

The company will file a series of standard motions with the court seeking approval to continue as a going concern during the trial.

Tupperware added that this includes ensuring the ongoing payment of wages and benefits to employees, as well as compensating suppliers and vendors on normal terms for goods and services received after the date the return was filed.

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This article Tupperware seeks bankruptcy protection as demand for colorful packaging declines in e-commerce era. This article originally appeared on Benzinga.com