Tupperware, the iconic brand once synonymous with food storage containers, filed for Chapter 11 bankruptcy as it faces declining sales, increased competition, and changing consumer behaviors.
The company, known for its pioneering direct-to-consumer sales model, has struggled in recent years to adapt to a shifting marketplace.
Laurie Ann Goldman, Tupperware’s president and CEO, explained that the company’s financial difficulties have been exacerbated by a challenging economic environment.
“We explored numerous strategic options and determined this is the best path forward,” she said in a statement.
The company will seek court approval to continue operating during the bankruptcy proceedings while exploring the potential sale of the business.
Despite efforts to reinvent itself by expanding into digital sales through platforms like Amazon and retail partnerships with Target, Tupperware has faced declining demand for its products. Founded in 1946 by chemist Earl Tupper, the brand gained prominence through “Tupperware parties” that revolutionized direct sales. However, that model, along with growing competition from other food storage brands, has contributed to the company’s current challenges.
In 2023, Tupperware narrowly avoided bankruptcy by securing a debt restructuring deal, but the company continued to face financial struggles. In June of this year, Tupperware announced the closure of its only US manufacturing facility and the layoff of 150 employees.
The company said it plans to continue serving customers with its products during the bankruptcy process, as it transitions toward becoming a “digital-first, technology-led company.”
With input from the Washington Post, Axios, Bloomberg.
