Iconic US-based food storage container firm Tupperware has filed for bankruptcy as it grapples with dwindling sales and deteriorating finances.
The 78-year-old company is seeking court approval to sell its business and continue operating through bankruptcy proceedings. Tupperware has more than $700m in debt, according to Bloomberg News.
“Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment,” president and CEO Laurie Ann Goldman said in a statement. “As a result, we explored numerous strategic options and determined this is the best path forward.”
Sales for the company’s products surged during the Covid-19 pandemic, driven by families staying at home and cooking more, but have declined in recent quarters as the US economy rebounded. Tupperware has engaged legal and financial advisers as it navigates prolonged negotiations with lenders to manage its debt obligations.
Goldman emphasised that the company would continue to serve customers while it navigates bankruptcy, and that employees and suppliers will still be paid.
“Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family. We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” she said.
“There are no current changes to Tupperware’s independent sales consultant agreements. The company will file certain customary motions seeking court approval to support its operations during the process, including the continued payment of employee wages and benefits as well as compensating vendors and suppliers under normal terms for goods and services provided on or after the filing date.”
Tupperware was founded in 1946 by Earl Tupper, a chemist who invented the airtight plastic seal designed to preserve food for longer.
The company rose to prominence thanks in large part to Brownie Wise, a pioneering saleswoman who introduced the concept of “Tupperware Party plan”. These in-home sales gatherings turned Tupperware into a household name.
The company’s products are sold in more than 70 countries, but the brand has struggled to retain relevance. For decades, Tupperware was synonymous with food storage innovation, but its recent decline marks a stark contrast to the brand’s mid-20th-century heyday.
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