Tupperware files for bankruptcy in US and hunts for new owners
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Tupperware, the lossmaking 78-year-old American plastic food container brand, has filed for bankruptcy and is on the hunt for new owners as it attempts to lure younger customers.
The company, which was founded by the chemist Earl Tupper in 1946 and became known for its patented “burping” seal, has started US Chapter 11 bankruptcy proceedings as bosses said that its finances had been “severely impacted” by the economic environment.
Tupperware became famous in the 1950s and 1960s when sales representatives, mostly women, held Tupperware parties to sell its range of plastic containers. For many, it was an opportunity to earn extra money for their households on a flexible schedule that did not require a full-time job outside the home.
The Massachusetts-headquartered company eventually became synonymous with home food storage and experienced a revival during the coronavirus pandemic when lockdown-bound customers spent more time cooking at home. However, it has since suffered a decline in sales, as it struggles to match competitors that promote their products to younger people on TikTok and Instagram.
The company warned last year that it was at risk of going bust unless it raised emergency funds.
Bosses said they were looking for potential buyers who could “protect its iconic brand and further advance Tupperware’s transformation into a digital-first, technology-led company”.
The Tupperware president and chief executive, Laurie Ann Goldman, said: “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 process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders. There is still a chance a buyer for the business can be found, but with plastic seen as far from fantastic, among eco-aware consumers, revitalising the brand will be an uphill struggle.”
Tupperware said it would ask for the court’s approval to continue operating during the proceedings. “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process,” Goldman said.
Tupperware’s share price has plunged by more than 50% this week, as news of its bankruptcy emerged.
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