Iconic Tupperware Brands seeks Chapter 11 bankruptcy

New York: Tupperware Brands, the company that revolutionized food storage decades ago, has filed for Chapter 11 bankruptcy protection.

The company plans to continue operating and will seek court approval for a sale, it said just before midnight on Tuesday.

The company is seeking bankruptcy protection amid growing struggles to revitalize its business. Tupperware sales growth improved during the early days of the COVID-19 pandemic, but overall sales have been in steady decline since 2018 due to rising competition. And financial troubles have continued to pile up for the Orlando, Florida, company.

Doubts around Tupperware’s future have floated around for some time.

Last year, the company sought additional financing as it warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange.

According to court documents published Tuesday, Tupperware currently employs more than 5,450 employees across 41 countries — and additionally partners with global sales force of over 465,000 consultants who sell products on a freelance basis in nearly 70 countries.

Tuesday’s announcement also pointed to aims to “further advance Tupperware’s transformation into a digital-first, technology-led company,” possibly signaling a move toward increased reliance of sales on the brand’s website or perhaps more online-focused marketing, although the company did not provide exact specifics.

Shares have fallen 75% this year and closed Tuesday at about 50 cents apiece. Tupperware experienced explosive growth in the mid-20th century with the rise of Tupperware parties, first held in 1948.

In a statement, Tupperware President and CEO Laurie Ann Goldman acknowledged Tupperware’s recent financial struggles and said that the bankruptcy process is meant to provide “essential flexibility” as the company pursues this transformation. She also maintained that the brand wasn’t going anywhere. “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,” Goldman said in a statement. “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”

Tupperware parties gave many women a chance to run their own businesses out of their homes, selling the products within social circles.

The system worked so well Tupperware removed its products from stores three years later. Social changes, namely fewer dinners made from scratch and more nights spent dining out, took a toll Tupperware sales.