Tupperware Brands Inc., the iconic brand of food storage containers, announced on September 17th that it filed for bankruptcy. Founded in 1938, the company is now actively seeking a buyer.
In an official statement, Tupperware revealed that “the company and certain of its subsidiaries have voluntarily commenced Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware.” The enterprise has requested court approval to continue operating during the bankruptcy process and is actively pursuing a sale of the business to preserve its renowned brand.
Laurie Ann Goldman, President and CEO of Tupperware, attributed the company’s financial difficulties to a “severely impacted” macroeconomic environment. Goldman explained that after exploring “numerous strategic options,” the bankruptcy filing was deemed the best course of action. She highlighted the company’s intention to transform Tupperware into a technology-driven and digital enterprise.
Tupperware’s Golden Era
Tupperware’s journey began a year before World War II. Earl Silas Tupper, a New Hampshire-based chemical engineer, invented a revolutionary polyethylene storage product featuring an airtight seal. Later on in 1938, he founded Tupperware Plastics Company, centered around his flagship product, the “Wonder Bowl,” now universally known as Tupperware.
The company’s sales strategy was revolutionized in the 1940s by Brownie Wise, who pioneered the concept of in-home demonstrations and parties. By 1949, Wise’s sales exceeded those of any Tupperware store or distributor. This led Earl Tupper to appoint her as Vice President and General Manager of the new Direct Sales System. Within three years, Tupperware boasted a sales force of over 20,000 representatives, propelling the brand to the forefront of a direct sales model that endures today.
The Decline of Tupperware
Tupperware’s fortunes began to wane significantly during the COVID-19 pandemic. Starting in 2021, the brand experienced six consecutive quarters of declining sales. The company’s stock price plummeted to a low of $1.37, although it temporarily recovered to $37.29 in January 2021. However, it never regained its peak of $95.88 in December 2013.
The pandemic initially led to a resurgence in demand for Tupperware as consumers sought to store food at home. However, the rise of delivery services and the availability of cheaper alternatives eroded this temporary boost. By April 2024, Tupperware’s stock price had fallen to $1.04.
Neil Saunders, Managing Director of Retail at GlobalData, attributed Tupperware’s decline to its failure to connect with younger consumers who prioritize environmentally friendly options and are less inclined towards direct sales models. Even among traditional Tupperware customers, Saunders noted a shift towards online shopping convenience.
According to Reuters, Tupperware’s debt stands at $812 million. A significant portion of this debt was acquired at a substantial discount by distressed debt investors in July, as revealed in court documents.