Tupperware, famous for its plastic food storage containers, has filed for Chapter 11 bankruptcy due to declining popularity and financial difficulties exacerbated by a challenging economic environment.
CEO Laurie Ann Goldman stated that this bankruptcy process aims to restructure the company and pivot towards becoming a digital-first, technology-led business.
Historically relying on direct sales through “Tupperware parties,” the brand has struggled to appeal to younger consumers and only expanded to retail outlets like Target in 2022.
Experts note that while there may still be a chance for the brand’s revival, significant challenges lie ahead, particularly given growing eco-consciousness among consumers regarding plastic products.
CNN has the story:
Tupperware, known the world over for its plastic food storage containers, has filed for bankruptcy after years of falling popularity and financial troubles.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” Laurie Ann Goldman, president and CEO of Tupperware Brands Corporation, said in a statement late Tuesday.
Chapter 11 bankruptcy allows companies to solve their financial problems by 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.
Tupperware has historically sold to consumers only through so-called direct sales, most commonly at “Tupperware parties,” similar to cosmetic company Avon’s business model, and only began selling in Target in 2022.
The 78-year-old brand empowered women to enter the sales business. “The party is over for Tupperware,” Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, said in a note.
“There is still a chance a buyer for the business can be found but, with plastic seen as far from fantastic among eco-aware consumers, revitalizing the brand will be an uphill struggle.”
Even though the brand was once a household name, it became less popular with younger consumers, in contrast with some of its competitors.
Tupperware rang the alarm bells in April 2023 when it disclosed in a regulatory filing that it could go out of business. The Florida-based company said at the time that, if it didn’t find more cash, it would no longer be able to fund its operations.