What happened to Tupperware?

Tupperware is experiencing a major fall from grace. The brand, which is synonymous with food storage containers, has seen a consistent drop in sales, stock prices, and profits. This has led to the company announcing some shocking news for such a legacy brand — now’s as good a time as any to stock up on some items.

On Sept. 17, Tupperware filed for Chapter 11 bankruptcy in the United States Bankruptcy Court in Delaware. Laurie Ann Goldman, the current president and CEO of the company, released a statement explaining Tupperware’s new directions and the reasons for the decision. 

Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward.

This decision came in the wake of a disastrous financial year. In April 2023, Tupperware revealed in a regulatory filing that it might go out of business if it didn’t increase its cash flow. At the time, the company received help from a deal from its creditors which allowed it to reduce its interest payments and secured $21 million in financing. The deal also granted Tupperware a reduction in its debt and an extension in payment time, but none of it was enough. According to CNN, the company saw a 74.5% drop in shares in the last year alone, with its shares now trading at 51 cents. 

Will Tupperware shut down production for good?

Chapter 11 bankruptcy is a common filing method for many companies as it allows the business to restructure its operations without shutting down. In the statement released by the company, it was stated that the “company intends to continue providing customers with award-winning, innovative products through Tupperware sales consultants, retail partners, and online at Tupperware.com.”

Tupperware worked on a unique business model for years where the company only made sales through “direct selling.” The brand was founded by Earl Tupper in 1942, an engineer and chemist who wanted to figure out a way to keep food fresher for longer. While Tupper came up with the product, it was one of his saleswomen, Brownie Wise, who devised the brand’s “Tupperware parties” sales model. From then, the company branded itself a women-led brand and has maintained this branding to date. 

For years the brand primarily sold its products through these “Tupperware parties,” where a salesperson would invite friends, neighbors, community members, and more to view and buy the products. With time, Tupperware parties were taken out of homes and were held at schools, workplaces, community events, and others. However, this sales model became outdated quickly, and Tupperware started distributing their products at Target in 2022. 

As explained in their statement, the company now plans on pivoting to an online selling model through its website. Though the brand has hit a hiccup, Tupperware users can rest assured that it isn’t going anywhere.