Tupperware Files for Bankruptcy Despite Efforts To Stay Afloat

Tupperware has filed for Chapter 11 bankruptcy protection. For years, the plastic container company has been struggling to remain relevant against competitors more adept at attracting younger consumers.

Tupperware’s bankruptcy filing will help keep operations going while the company restructures debt and seeks a buyer. With court approval, the company will continue serving customers as well as paying employees and suppliers during the process.

“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” said Tupperware CEO Laurie Ann Goldman in a statement. “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 better positioned to serve our stakeholders.”

During the COVID-19 pandemic, Tupperware sales surged as people needed plastic containers to store leftover home-cooked food. However, the success was short-lived. Tupperware’s bottom line began eroding as costs for raw materials and shipping went up due to supply chain issues.

In April 2023, Tupperware announced it was in financial trouble, and without additional financing, it was going out of business. Shortly thereafter, a deal with creditors reduced the company’s interest payments by $150 million. Payment extensions were granted for another $348 million in debt, while at the same time, $55 million in loans were forgiven. Tupperware was also able to secure an additional $21 million in financing from creditors.

Tupperware became a household name by selling plastic food containers through sales consultants, who threw “Tupperware parties.” Up until just a few years ago, direct sales were the only way a consumer could get their hands on the company’s products.

Yet, in recent years, Tupperware’s brand and sales model seemed outdated to younger consumers, who were both unfamiliar with direct sales and looking for more modern, trendier products. To regain some traction and attract new customers, a deal with Target brought many Tupperware products into retail stores. However, the brand failed to catch on with shoppers.

According to CBS News, Tupperware has 50,000 to 100,000 creditors and owes between $1 billion and $10 billion. Company assets are worth between $500 million and $1 billion.