Iconic Tupperware Brands Files for Chapter 11 Bankruptcy Protection

Tupperware Brands, known for revolutionizing food storage solutions decades ago, has filed for Chapter 11 bankruptcy protection.

In its announcement just before midnight on Tuesday, the company said it intends to continue operations and will pursue court approval for a potential sale.

The Chapter 11 filing marks a significant step for Tupperware as it grapples with ongoing challenges to revitalize its business model. Despite a brief boost in sales during the early stages of the COVID-19 pandemic, Tupperware has faced a consistent decline in sales since 2018, largely due to increased competition. The financial difficulties have continued to mount for the company, which is based in Orlando, Florida.

Concerns about the future of Tupperware have lingered for some time. Last year, the company sought additional funding while cautioning investors about its sustainability and the looming risk of being delisted from the New York Stock Exchange.

Currently, Tupperware shares have plummeted by 75% this year, closing at approximately 50 cents each on Tuesday.

The company once thrived in the mid-20th century, largely due to the rise of Tupperware parties that began in 1948. These parties not only created a social event around selling their products but also provided countless women the opportunity to run their own small businesses from home, promoting Tupperware within their community.

However, the success of this model led the company to withdraw its products from retail outlets just three years later. Changes in social norms, particularly a decline in home-cooked meals and an increase in dining out, adversely impacted Tupperware’s sales over the years.