Tupperware, founded in 1946, announced it will be filing for Chapter 11 bankruptcy.
Transcript:
Conway Gittens: Here’s what we’re watching on TheStreet today.
With falling interest rates in focus, housing is in the spotlight. Mortgage applications surged 14.2 percent for the week ended September 13th, according to the Mortgage Bankers Association. The MBA’s weekly survey also showed the average 30-year fixed-rate at 6.15 percent during that period, which is the lowest mortgage rate in 2 years – and a full percentage point drop from a year ago. Meanwhile, The Commerce Department announced construction of new single family homes surged nearly 16 percent in August. The supply of new housing now sits near highs not seen since 2008.
Shifting now to another business headline: Tupperware, the once iconic brand that turned mid-century housewives into entrepreneurs, has filed for bankruptcy.
At one point, the name Tupperware was so identifiable as a brand that it became a stand-in for any plastic food container; similar to what Kleenex meant for facial tissue and Band-Aid meant for self-adhesive bandages.
But the brand has struggled for years as the rise of environmental consciousness placed plastic usage in a negative light. Rivals were able to make containers cheaper and more environmentally acceptable. More recently, it also suffered from higher labor and raw material costs.
In a statement, CEO Laurie Goldman said, “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.”
According to the bankruptcy court filing, Tupperware has an estimated $500 million to $1 billion in assets, while its estimated liabilities go as high as $10 billion.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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