Tupperware Files For Bankruptcy After Nearly 80 Years

Tupperware stock prices peaked in 2014 when the company boasted a stock price of $93 per share. As of September 16, just one day before filing for bankruptcy, those prices sunk to less than 50 cents per share. Bankruptcy, however, does not mean the end, as a Chapter 11 filing could give the business protection to continue operations as it seeks approval for sale.

The company’s debt ballooned to over $700 million in 2023, and at the time, executives knew the company was facing serious problems that would likely lead to bankruptcy.

Interestingly, the lack of demand for Tupperware wasn’t the only issue the business faced. In late 2022, the federal Securities and Exchange Commission fined Tupperware for failing to maintain accurate books and records. In 2023, the company cut top positions and hired a new CEO.

All of these efforts seemingly came too late, however, and the last remaining US factory announced its permanent closure last June. Layoffs reportedly began this September, and the 148 workers will be out of a job when the plant plans to officially close in January 2025.

Earl Tupper founded Tupperware all the way back in 1942. The company began selling the iconic bell-shaped contains four years later. A game-changer at the time, Tupper’s patented sealing lids were all the rave, and the company ingeniously marketed its products to women in a revolutionary way.

While Tupper may be the man behind Tupperware’s creation, Brownie Wise is the lady who should be credited for making the product a household staple for more than 80 years. Wise developed the party plan in which women were encouraged to sell Tupperware.

As Tupperware saleswomen, they hosted parties where they could invite their friends over for drinks and food served with the products they would be selling to them by the end of the night. It was a win-win scenario at the time as it allowed a post-War era housewife to make a living while tending to the house.

At that time, Tupperware’s business model worked so well that they didn’t need to sell products in stores. But as times changed, so did interest in the product. As the modern-day family spent less time in the kitchen and more time eating meals on the go, the demand for the popular contained diminished.

In a statement, the company said, “Tupperware will seek Court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online.”

For now, you can still purchase Tupperware through a party, on the company’s online store, and even Amazon. However, the company’s future remains up in the air as it seeks bankruptcy protection. One thing seems certain: if the company is able to continue operations and make a sale, major digital-age changes will be necessary for the iconic brand to have any hopes of survival.

Source: PR Newswire