Tupperware, the company known for its plastic food storage containers, has filed for Chapter 11 bankruptcy. The company has been struggling for years with declining popularity and financial troubles.
A fate foretold (by me on the BBC World Service last year as it goes) https://t.co/I9Cv0XQOhP
— Josh Barrie (@joshbythesea) September 17, 2024
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” said Laurie Ann Goldman, president and CEO of Tupperware Brands Corporation.
Chapter 11 bankruptcy allows companies to address their financial issues through restructuring.
No party here. Tupperware shares plunged 57.5% yesterday…to just 51 cents a share…on Bloomberg report saying bankruptcy filing is imminent. $TUP https://t.co/wH9m2b0m1i
— Paul R. La Monica (@LaMonicaBuzz) September 17, 2024
“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 marketed its products directly to consumers through “Tupperware parties,” similar to the business model of cosmetic company Avon.
This method has fallen out of favor, especially with younger consumers.
Thank you, Tupperware.
Your products helped me learn discipline, including going back to school to find it so that I don't get scolded by my mother cos I "lost it".https://t.co/nZWOsQNaRE
— Sean Thum 🇲🇾 (@Seanthum) September 17, 2024
“The party is over for Tupperware,” commented Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown.
Tupperware’s financial struggles deepen
Tupperware filed for bankruptcy today. They tried to keep a lid on the news but couldnt find one. #tupperware https://t.co/o6PcXaoQKt
— Tim Conway Jr Show (@ConwayShow) September 19, 2024
“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.”
The company raised alarm bells in April 2023 when it announced the potential of going out of business. The Florida-based company indicated at the time that, without additional funds, it would be unable to continue its operations. In response, Tupperware managed to secure a deal four months later to reduce its interest payment obligations by $150 million.
It also secured $21 million in new financing, an extension on the deadline for repaying about $348 million in debt, and a reduction in the amount of debt by approximately $55 million. Despite these measures, the company’s finances continued to decline. Tupperware shuttered its only US plant in South Carolina this year, resulting in 148 layoffs.
The company announced on Tuesday that it would seek the approval of the bankruptcy court to continue operating during Chapter 11 proceedings. Tupperware shares have plummeted 74.5% this year, last trading at just 51 cents. The company’s story serves as a reminder that even the most iconic brands must evolve with the times to stay relevant in today’s rapidly changing market.
- PBS.”Tupperware files for bankruptcy as it struggles to revitalize its business”.
- CNN.”‘The party is over’ as Tupperware files for bankruptcy after years of troubles”.
- Forbes.”From Kitchen Icon To Cautionary Tale: Lifting The Lid On Tupperwares Challenges”.