Why Tupperware is filing for bankruptcy
With falling interest rates making headlines, the housing market is gaining attention. Mortgage applications surged by 14.2% for the week ending September 13th, according to the Mortgage Bankers Association (MBA). The MBA’s weekly survey revealed that the average 30-year fixed mortgage rate stood at 6.15% during this period, marking the lowest rate in two years—a full percentage point drop compared to the same time last year. Additionally, the Commerce Department reported a nearly 16% surge in new single-family home construction in August, with the supply of new housing reaching levels not seen since 2008.
Tupperware Files for Bankruptcy
In other business news, Tupperware, the once-iconic brand that empowered mid-century housewives to become entrepreneurs, has filed for bankruptcy. Once as synonymous with plastic food containers as Kleenex is with facial tissues or Band-Aid is with adhesive bandages, Tupperware has faced significant struggles in recent years.
Environmental and Economic Challenges
The brand has battled the rise of environmental awareness, which has placed plastic in a negative spotlight. Competitors were able to produce cheaper, more eco-friendly alternatives, and Tupperware also faced rising labor and raw material costs. In a statement, CEO Laurie Goldman acknowledged the company’s financial struggles, stating, “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.”
Financial Position in Bankruptcy Filing
According to the bankruptcy court filing, Tupperware has between $500 million and $1 billion in assets, while its estimated liabilities range as high as $10 billion.
That concludes today’s Daily Briefing. Reporting from the New York Stock Exchange, I’m Conway Gittens with TheStreet.
Also read: Tupperware sounds the alarm on a trend that led to bankruptcy
