Tupperware, the iconic maker of plastic food storage containers, has officially filed for Chapter 11 bankruptcy after facing years of declining sales and financial difficulties. Once a household name, the company has struggled to maintain its relevance and adapt to changing consumer preferences.
In a statement released late Tuesday, Laurie Ann Goldman, President and CEO of Tupperware Brands Corporation, acknowledged the financial pressures that have plagued the company. “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Goldman said. Filing for Chapter 11, which allows companies to reorganize their finances, gives Tupperware a chance to address its financial issues. Goldman emphasized that this process “is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company.”
Historically, Tupperware operated on a direct sales model, with its famous “Tupperware parties” similar to how Avon marketed its products. It wasn’t until 2022 that the brand began selling its products in Target stores, marking a shift in strategy. The company, founded 78 years ago, was seen as a pioneering force in empowering women to enter the sales industry. However, its decline in popularity among younger consumers and growing concerns over plastic products contributed to its financial struggles.
“The party is over for Tupperware,” noted Susannah Streeter, head of money and markets at UK-based Hargreaves Lansdown, in a statement. She added that while a buyer might still emerge for the business, revitalizing the brand would be challenging. “With plastic seen as far from fantastic among eco-aware consumers, revitalizing the brand will be an uphill struggle.”
Tupperware’s troubles became public in April 2023 when the company warned that it might go out of business if it could not secure additional financing. In August, the company managed to reach a deal with creditors, reducing its interest payments by $150 million and securing $21 million in new financing. It also received an extension on the deadline for repaying $348 million in debt and reduced its total debt by $55 million. Despite these efforts, the company’s financial situation continued to worsen.
Earlier this year, Tupperware closed its only U.S. manufacturing plant in South Carolina, resulting in 148 layoffs, according to a Worker Adjustment and Retraining Notification (WARN) Act filing.
As the company proceeds with Chapter 11 bankruptcy, it plans to seek court approval to continue its operations during the restructuring process. Bankruptcy protection is often used by businesses to reduce debt, cut costs, and streamline operations.
Tupperware’s stock has plummeted by 74.5% this year, with shares last trading at just 51 cents, reflecting the deep financial challenges the once-prominent brand faces. Whether Tupperware can find a way to recover or will be forced to wind down its operations remains to be seen.
Gary P Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
