Tupperware files for bankruptcy court protection

The world changed and Tupperware Brands Corp. did not. Now a bankruptcy court judge will determine the company's fate.

Tupperware, with a staggering number of creditors, is seeking bankruptcy court protection, a long-anticipated move for the plastic food container maker that has struggled under a heavy debt load for years.

A goal is to find a buyer willing to take over the company, which for decades had been part of the fabric of Americana, but lost footing in recent years.

By seeking Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del., Tupperware aims to continue operations as the company reorganizes under judicial supervision.

Documents filed with bankruptcy court give a clearer picture regarding just how bad it is at the Orlando, Fla.-based maker of plastic kitchen ware.

Tupperware lists assets of $679.5 million and liabilities of $1.2 billion. The company estimates the number of creditors at between 50,001 and 100,000.

Tupperware has been warning since 2022 the company was facing financial troubles and might not make it.

"For decades, Tupperware's direct selling business model thrived, offering individuals across the globe — predominantly women — an opportunity to build their own business and develop valuable leadership and financial management skills, while also cementing the Tupperware brand in the hearts and homes of consumers," Tupperware Chief Restructuring Officer Brian Fox said in a court filing.

"In recent years, however, the historical strengths of a widespread direct selling model began to turn into weakness. The company's focus on its direct sales model ultimately came at the cost of developing an omnichannel strategy, or even modern e-commerce infrastructure to support its sales force," he said in the filing.

Tupperware was pushed into filing for Chapter 11 bankruptcy court protection after a self-described ad hoc group of lenders sought to take over the company in exchange for debt owed in a foreclosure process, according to a Sept. 9 letter to the Tupperware board from the law firm of Dechert LLP representing the debtors.

"The lenders under the revolving/term loan credit agreement and bridge loan credit agreement have valid, perfected liens on substantially all of the company's assets," the letter reads.

Tupperware, in a Sept. 14 response from its law firm of Kirkland & Ellis, raised concern that a "strict foreclosure approach could give rise to a host of lawsuits, by and against various parties, asserting that the assets were wrongfully transferred."

Three days later, on Sept. 17, Tupperware sought bankruptcy court protection despite a Sept. 16 warning from the ad hoc committee that it would seek to thwart block the move once the filing took place.