Tupperware, famous for its plastic containers, has filed for bankruptcy. Years of declining popularity and financial struggles finally caught up with the brand.
“Our financial situation has been severely impacted by the tough economic environment,” said Laurie Ann Goldman, president and CEO of Tupperware, in a statement on Tuesday.
The company filed for Chapter 11 bankruptcy, which allows businesses to restructure and solve financial issues. “This process gives us flexibility as we transform into a tech-driven, digital-first company,” Goldman added.
Tupperware has traditionally relied on direct sales, with its famous “Tupperware parties.” It only began selling in Target in 2022. The brand, now 78 years old, helped women step into the world of sales.
“The party is over for Tupperware,” said Susannah Streeter from UK’s Hargreaves Lansdown. “There’s still hope a buyer can be found, but with eco-conscious consumers moving away from plastic, it’s going to be tough.”
Despite once being a household name, Tupperware’s appeal has faded, especially among younger consumers. Competitors have taken the lead in recent years.
In April 2023, Tupperware raised alarms when it revealed that it might go out of business if it couldn’t secure more funds. The Florida-based company said it was running out of cash to support its operations.
A deal came four months later. Tupperware worked out an agreement with its creditors, cutting its interest payments by $150 million and securing $21 million in new financing. It also reduced its debt by $55 million and extended the deadline to repay $348 million.
Still, the company’s finances continued to spiral downward. Tupperware closed its only US plant in South Carolina, laying off 148 workers.
Tupperware now seeks approval from the bankruptcy court to keep operating during its Chapter 11 process.