The iconic American brand Tupperware has now filed for bankruptcy after struggling to stay afloat amid declining sales for several years in a row.
Despite efforts in recent years to revamp its product lineup in a bid to appeal to younger consumers, Tupperware has been unable to distinguish itself from its competitors. Last year, the company issued a warning that it could face insolvency if it didn’t secure new financing swiftly.
Tupperware has become so embedded in popular culture that its name is often used to describe any plastic food container. The company has announced plans to seek court approval to initiate a sale process, while continuing operations in the meantime. This week, its stock plummeted over 50% following reports of the impending bankruptcy filing.
Though it experienced a brief spike in sales during the pandemic when more people cooked at home, demand has since sharply declined. Rising costs for raw materials, labour, and transportation have further squeezed profit margins, making the decision to file for bankruptcy inevitable, despite efforts to boost sales.
CEO Laurie Ann Goldman acknowledged the company’s struggles and mentioned the tough economic climate over the past several years as a key factor in their financial woes.
In a statement, she said: “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.”
The company was founded in 1946 by Earl Tupper, who introduced the now-famous airtight, flexible lids. Tupperware revolutionized food storage at a time when refrigerators were out of reach for many households. However, its early years were challenging.
It was Brownie Wise, a trailblazing saleswoman, who transformed the brand by creating the now-legendary “Tupperware parties,” where women sold the product directly to other women in their homes. The company grew over time and today the products are available in 70 countries worldwide.
