Tupperware flags a concerning trend that led to bankruptcy 

Tupperware Brands (TUP) has just made a startling business move. The company filed for Chapter Eleven financial disaster to reorganize its debts and prevent an ad hoc group of its lenders from acquiring its business through foreclosure.

"Over the past a few years, the company's financial position has been severely impacted by the not easy macroeconomic environment,” said Tupperware CEO Laurie Ann Goldman in a press free up. “Consequently, we explored a very good deal of strategic options and determined which is definitely the right path forward.”

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Within the financial disaster filing, which became filed on Sept. 17, Tupperware claims that years of declining sales, which have been exacerbated by evolving consumer shopping habits, resulted in the cruel decision. One major shift that the company listed became the growing anti-plastic movement, which involves consumers avoiding plastic food containers attributable to fear of ingesting microplastics and chemicals.

“The company became founded around one way to decrease food waste and has a longstanding commitment to sustainability, but most recent years have been marked by a general resurgence in hesitancy regarding plastics (specifically plastics containing BPAs),” said Tupperware for the duration of the filing. “These developments have presented headwinds for the company, which has had to closely display screen customer sentiment, strive against misconceptions about its products, and, at times, reconfigure its product offerings.”

Tupperware makes major change amid growing concerns over plastics

Tupperware became invented in 1946, and which is miles made from plastics reminiscent of polyethylene and polypropylene, so for you to be found in most moldable products. Both compounds are thought about safe, and have been approved by the U.S. Food and Drug Administration to use in food containers, but both have been found to leach unknown chemicals into foods and drinks when exposed to high temperatures.

Quite a very good deal of these leached chemicals can result in health issues reminiscent of infertility and sure cancers.

Polycarbonate is another plastic which is in most cases utilized in food containers, that can leak BPA, a chemical that has been linked to reproductive issues. In March 2010, Tupperware stopped selling products for the duration of the U.S. and Canada that contain polycarbonate, replacing it with materials that are BPA-free, amid growing concerns of the compound’s effects on human health.

Consumers are commencing to keep up away from plastic food containers

As concerns regarding plastic containers getting used for food storage continue to grow, there has been an enlarge in demand for nonplastic food containers reminiscent of glass, stainless-steel, bamboo, etc., in keeping with a most recent report from Research and Markets.

Some consumers have even taken to social media to issue warnings in regards to the hazards of the usage of plastic containers to store food, all while promoting usage of glass containers.

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As the anti-plastic trend continues to turn out to be more popular, which is miles no surprise that it has been a contributing factor to shrinking Tupperware sales. The last time Tupperware released an earnings report became in March 2023, which detailed its fourth-quarter earnings for 2022. Within the report, it revealed that in the quarter, its net sales decreased by 20%, in comparison with the identical time frame in 2021.

After filing for financial disaster, Tupperware may be engaged on bolstering its brand. Within the company’s financial disaster announcement, it revealed that it has to be seeking court approval to sell its business so which that you only may “give protection to its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company.”

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