‘The party is over’ as Tupperware files for bankruptcy after years of troubles

Tupperware, the iconic brand recognized globally for its plastic food storage containers, has filed for bankruptcy after years of declining popularity and financial struggles.

Laurie Ann Goldman, president and CEO of Tupperware Brands Corporation, explained in a statement on Tuesday that “the company’s financial position has been severely impacted by the challenging macroeconomic environment over the last several years.”

The company has filed for Chapter 11 bankruptcy, which allows businesses to address financial issues through restructuring. “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,” Goldman added.

Historically, Tupperware relied on direct sales to reach consumers, primarily through "Tupperware parties," similar to the sales model used by cosmetic company Avon. It wasn’t until 2022 that Tupperware began selling its products at Target. The 78-year-old company has long empowered women to enter the sales industry.

However, according to Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, “The party is over for Tupperware.” She noted that while there’s still hope for a buyer, “with plastic seen as far from fantastic among eco-aware consumers, revitalizing the brand will be an uphill struggle.”

Once a household name, Tupperware has struggled to maintain its appeal with younger consumers, unlike some of its competitors.

In April 2023, the company raised alarms in a regulatory filing, warning that it might go out of business if it didn’t secure additional funding. Four months later, Tupperware found a lifeline, reaching an agreement with its creditors to reduce its interest payments by $150 million. The deal also included $21 million in new financing, an extension on the deadline to repay about $348 million in debt, and a reduction of $55 million in the overall debt it owed.

Despite this deal, Tupperware’s financial situation continued to deteriorate. The company closed its only US plant in South Carolina this year, leading to 148 layoffs, according to a Worker Adjustment and Retraining Notification Act filing.

On Tuesday, Tupperware announced it would seek approval from the bankruptcy court to continue its operations during the Chapter 11 process.

Many companies use bankruptcy protection to wind down operations, eliminate debt, and reduce expenses. Chapter 11 is a common route for businesses facing such challenges.

Tupperware’s stock has dropped by 74.5% this year, with its last recorded price at just 51 cents.