Tupperware to file for bankruptcy

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Tupperware is filing for bankruptcy.

Transcript

00:00I'm Conway Giddens reporting from the New York Stock Exchange. Here's what we're watching on

00:03the street today. With falling interest rates in focus, housing is in the spotlight. Mortgage

00:09applications surged 14.2% for the week ended September 13th, according to the Mortgage

00:14Bankers Association. The NBA's weekly survey also showed the average 30-year fixed rate at 6.15%

00:22during that period, which is the lowest mortgage rate in two years and a full percentage point

00:28drop from a year ago. Meanwhile, the Commerce Department announced construction of new single

00:33family homes surged nearly 16% in August. The supply of new housing now sits near highs not

00:39seen since 2008. Shifting now to another business headline, Tupperware, the once iconic brand

00:47that turned mid-century housewives into entrepreneurs has filed for bankruptcy.

00:52At one point, the name Tupperware was so identifiable as a brand that it became a stand-in

00:56for any plastic food container, similar to what Kleenex meant for facial tissue and Band-Aid meant

01:03for self-adhesive bandages. But the brand has struggled for years as the rise of environmental

01:09consciousness placed plastic usage in a negative light. Rivals were able to make containers cheaper

01:15and more environmentally acceptable. More recently, it also suffered from higher labor and raw material

01:21costs. In a statement, CEO Laurie Goldman said, quote, over the last several years, the company's

01:26financial position has been severely impacted by the challenging macroeconomic environment.

01:33According to the bankruptcy court filing, Tupperware has an estimated $500 million to $1

01:37billion in assets, while its estimated liabilities go as high as $10 billion.

01:44That'll do it for your daily briefing from the New York Stock Exchange.

01:47I'm Conway Gittins with The Street.