Following years of difficulties, the US maker of the well-known plastic food storage containers Tupperware announced today that it has begun bankruptcy proceedings.
“For several years, the company’s financial condition had been significantly impacted by a difficult macroeconomic environment,” said Lori Ann Goldman, the company’s chief executive who filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
“We therefore considered several strategy options and determined” that coming under the bankruptcy protection law was “the best solution” as it would provide “the flexibility” needed for the digital and technological transformation of our company, the CEO explained in the bankruptcy documents.
The company, which is based in Orlando, Florida, wants to continue to operate during the proceedings and plans to continue paying its employees and suppliers, Goldman also explained.
Yesterday, Tuesday, trading in Tupperware shares was suspended on the New York Stock Exchange.
In mid-August, the company had announced that it was still “experiencing significant liquidity issues” and that it “had doubts about its ability to continue operations.”
Tupperware has been saddled for several years with hundreds of millions of dollars in debt and had already had to restructure its financial commitments for a first time in 2020.
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