(Reuters) -Tupperware Manufacturers and a few of its subsidiaries filed for Chapter 11 chapter safety on Tuesday, succumbing to declining demand for its once-popular colourful meals storage containers and ballooning losses.
The corporate’s struggles to stem the drop in gross sales resumed after a short surge throughout the pandemic when folks cooked extra at dwelling and turned to its hermetic plastic containers to retailer leftovers.
The post-pandemic leap in prices of essential uncooked supplies similar to plastic resin, in addition to labor and freight additional dented the corporate’s margins.
In August, Tupperware (NYSE:) had raised substantial doubt about its potential to proceed as a going concern for the fourth time since November 2022 and stated it confronted a liquidity crunch.
The corporate listed $500 million to $1 billion in estimated belongings and $1 billion-$10 billion in estimated liabilities, in keeping with chapter filings within the U.S. Chapter Courtroom for the District of Delaware.
Tupperware has been planning to file for chapter safety after breaching the phrases of its debt and enlisting authorized and monetary advisers, Bloomberg reported on Monday.
The report stated the chapter preparations started following extended negotiations with lenders over the greater than $700 million in debt.