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Tupperware filed for Chapter 11 bankruptcy protection Tuesday, giving in to dwindling demand for its once-iconic food storage containers and mounting financial losses.
Founded in 1946 by chemist Earl Tupper to help war-weary families save money on food waste, Tupperware was historically sold to consumers through so-called direct sales, most commonly at "Tupperware parties," similar to cosmetic company Avon's business model. It was a direct marketing event, typically organized by a woman and hosted in a customer's home or her own — so she could sell Tupperware products and earn commissions.
It revolutionized the woman's role in the kitchen and the U.S. economy at the time, turning homemakers into saleswomen. Through the success of in-person sales techniques, the food storage pioneer now ranks as one of the brand names people use as generic terms. The list also includes Q-Tips, Band-Aid, Kleenex, and Sharpie.
Tupperware’s struggles began in the ‘80s when several of Tupperware's patents expired and rivals — from off-brand plastic food storage containers to major players like Rubbermaid, OXO, and Glad — entered the market with cheaper alternatives. Recycled takeout containers also offered new competition.
Women joining the workforce also limited their time to attend Tupperware parties. In the early ‘90s, Tupperware began sending out unsolicited catalogs in its first move into direct mail while launching its e-commerce site in 1999, but it continued to emphasize one-on-one contact with customers rather than selling its products in stores.
In its Chapter 11 filing, Brian J. Fox, Tupperware’s chief restructuring officer, wrote that the strengths of Tupperware’s direct-to-consumer marketing model became “weaknesses,” saying the company failed to develop a diverse sales strategy, including for online shoppers.
Only in 2022 did it set up a storefront on Amazon and start selling at Target as part of a plan to grow the business through multiple retail channels and get its products in front of younger consumers who never experienced the era of Tupperware parties. It began selling at Macy’s this year. Fox wrote in the filing, “In stark contrast to the early days of the company, nearly everyone now knows what Tupperware is, but fewer people know where to find it.”
Tupperware also long promoted the durability of reusable, long-lasting plastic, but consumers are increasingly interested in more sustainable materials, such as glass and stainless steel, Jennifer Christ, manager of consumer and commercial research for the Freedonia Group told The Associated Press. A sustainable range was introduced in 2019, along with a commitment to create a circular economy for plastic.
Laurie Ann Goldman, Tupperware’s president and CEO, blamed the bankruptcy on a “challenging macroeconomic environment” over the last several years. While receiving a temporary boost during the stay-at-home phase of the pandemic, Tupperware’s sales slowed as restrictions eased, and losses grew due to rising raw material costs and other expenses tied to supply-chain disruptions.
The company said in a press release that it will seek bankruptcy court approval “to facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company.”