Tupperware joins hundreds of other companies in filing for Chapter 11 bankruptcy amid ongoing financial struggles that have greatly impacted how the company has been able to do business. For years now, Tupperware has fallen in popularity among American consumers, particularly thanks to its traditional direct sales business model.
For decades, Tupperware items were only available to purchase through these direct sales, similar to how Avon sells their cosmetics and products. By attending these “Tupperware parties,” consumers could purchase items from salespeople.
Analysts have explained that this traditional method may have eventually hurt Tupperware’s profits in recent years. In 2022, Tupperware finally began to sell its products exclusively at Target.
Tupperware’s Ongoing Struggles
Laurie Ann Goldman, the CEO and president of Tupperware Brands Corporation, released a statement saying, “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.”
Goldman has further explained that this bankruptcy filing will allow the company to restructure, thereby solving many of its current financial problems. Goldman said, “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.”
Many large businesses file for Chapter 11 bankruptcy protection in a maneuver that is designed to cut costs and help companies get rid of debt. Bankruptcies can also help companies slim down various operations of the business itself. As a result, filing for Chapter 11 has become a very common move for many companies in the United States.
This Chapter 11 filing may have been a long time coming for the company, as Tupperware previously revealed in April of 2023 that it could soon go out of business thanks to its financial woes.
During this revelation, which appeared in a regulatory filing, the company explained that if it didn’t find a way to bring in more cash, it wouldn’t be able to continue operating.
Only a few months later, Tupperware was able to reach a deal that saw its creditors agree to a reduction in its interest payments. Though Tupperware also received new financing of $21 million, these moves evidently didn’t pan out, as the company has now filed for bankruptcy.
2024 also saw Tupperware close its only plant in the United States, located in South Carolina, which resulted in 148 layoffs.
Tupperware’s Future
While the company is explaining that this filing will help it restructure, some analysts have claimed that Tupperware has a long road ahead.
Susannah Streeter, the head of money and markets at Hargreaves Lansdown, recently said, “The party is over for Tupperware.”
Streeter added, “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.”
Analysts have also noted that Tupperware may continue to struggle to revitalize its popularity in America, particularly with younger consumers who may be less inclined to purchase its plastic containers.
During these bankruptcy proceedings, Tupperware is seeking to continue operating.
