Iconic brand Tupperware filed for bankruptcy Tuesday as consumers’ evolving shopping behaviors and increased competition slumped sales.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” Laurie Ann Goldman, president and chief executive of Tupperware, said in a statement. “As a result, we explored numerous strategic options and determined this is the best path forward.”
Tupperware will seek court approval to start a sale process for the business to protect its brand and advance its “transformation into a digital-first, technology-led company,” the company said.
Tupperware will also seek court approval to continue operating during the bankruptcy process, including continuing to pay employees, as well as compensating vendors and suppliers for goods and services provided on or after the filing date.
The news comes just more than a year after the company narrowly avoided bankruptcy. In August 2023, four months after the Orlando-based food storage company expressed “substantial doubt” about its viability amid declining sales, Tupperware announced a deal to restructure its debt.
The company reduced its interest payments on debt by $150 million, secured a borrowing capacity of up to $21 million, cut its debt by $55 million and got a deadline extension to repay $348 million in interest and fees to the 2027 fiscal year.
Executives were “confident” in the restructuring plan, chief financial officer Mariela Matute said in a news release at the time, the Washington Post reports.
A year later, the plan didn’t have legs to sustain the company. In June, Tupperware reported it was shuttering its only US facility, in Hemingway, S.C., and would start laying off almost 150 employees later this month and through early next year, Retail Dive reported.
Tupperware is a household name
Tupperware is a household name synonymous with airtight containers and kitchen organization. Its story begins in the 1940s with Earl Tupper, an engineer who developed a plastic material that was both durable and flexible. He used this material to create a line of airtight containers designed to keep food fresh.
Tupperware’s real breakthrough came with the innovative home-party marketing model. Rather than selling through traditional retail channels, Tupperware pioneered a system where independent sellers, or “Tupperware Consultants,” would host parties in homes.
At these parties, guests would demonstrate the products, be encouraged to try them, and ultimately be persuaded to purchase them. This model created a sense of community and excitement around the brand.
Tupperware’s success quickly spread beyond its initial market in the US. By the 1950s and 1960s, the brand had expanded globally, becoming a cultural icon in many countries. Tupperware parties were a popular social event, and the products became essential kitchen items for millions of people.
While Tupperware has enjoyed decades of success, it has not been without its challenges. The rise of disposable plastics and changing consumer habits have presented new competition.
To adapt, Tupperware expanded its product line to include items beyond food storage, such as kitchen utensils and organizers. Additionally, the company embraced e-commerce to reach a wider audience.
