US multinational Tupperware has begun bankruptcy proceedings, dragged down by falling sales, and will seek court approval to continue operating and facilitate a sale process to protect the brand.

The bankruptcy filing in the Delaware Bankruptcy Court comes after months of proceedings.

Tupperware Brands, known worldwide for its plastic food storage containers, voluntarily initiated Chapter 11 proceedings in the Delaware Bankruptcy Court, which caused shares to fall by more than 50% on the New York Stock Exchange and led to the subsequent suspension.

As the company's CEO, Laurie Ann Goldman, pointed out to the US media, the company's financial situation has been seriously affected in recent years by a difficult macroeconomic environment.

Increased competition and falling demand for its products have weakened the company's activity in recent years, as it struggled with liquidity problems.

Tupperware was founded in Massachusetts in 1946 by chemist Earl Tupper, who designed the iconic airtight plastic containers to help families preserve food during the post-war period.

The iconic brand also became known for its door-to-door sales, identified as "Tupperware parties".

A publication by Bloomberg notes that the company had already postponed its 2023 annual accounts in March of this year and, in June, announced plans to close its only plant in the US and lay off almost 150 employees.

Since 2020, the kitchenware company, which has led the food storage business for decades, has been facing problems that cast doubt on its chances of survival.

Last year, Tupperware, whose shares have fallen by almost 75% so far this year, reorganized its management team and appointed Laurie Ann Goldman as CEO (executive president) to replace Miguel Fernandez.

According to the media, Tupperware has assets of between 500 million dollars and 1 billion dollars and liabilities of between 1 billion and 10 billion dollars. It also has more than 700 million dollars in loans.

The company will now seek court approval to facilitate a process to sell the company and continue operating during bankruptcy proceedings.

A decade after it began operating in the United States, Tupperware expanded to Europe and, by the mid-1960s, it was present in six European countries, before making the leap to the Latin American and Asian markets.

(Photo DR)