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What Chapter 11 bankruptcy means
Filing for bankruptcy doesn't always mean the end for an American business.
ORLANDO, Fla. - Tupperware Brands, the iconic food storage company, has filed for Chapter 11 bankruptcy protection.
The company announced just before midnight on Tuesday that it plans to continue operating and will seek court approval for a sale.
Here’s what to know:
Tupperware files for bankruptcy
Tupperware Brands is seeking bankruptcy protection amid growing struggles to revitalize its business.
Tupperware sales growth improved during the early days of the pandemic, according to the Associated Press. But due to rising competition, overall sales have been in steady decline since 2018. Financial troubles have also continued to pile up for the Orlando, Florida-based company.
"Tupperware will seek Court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online," the company said in a statement.
FILE - Tupperware items, including a set of retro storage containers at left, rest on a table during a Tupperware party in Sebastian, Florida, on May 18, 2022. (Stephen M. Dowell/Orlando Sentinel/Tribune News Service via Getty Images)
Doubts around Tupperware's future have floated around for some time.
Last year, the company sought additional financing as it warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange.
Shares have fallen 75% this year and closed Tuesday at about 50 cents apiece.
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Tupperware experienced explosive growth in the mid 20th century with the rise of Tupperware parties, first held in 1948. Tupperware parties gave many women a chance to run their own businesses out of their homes, selling the products within social circles.
The system worked so well that Tupperware removed its products from stores three years later. Social changes, namely fewer dinners made from scratch and more nights spent dining out, took a toll on Tupperware sales.