Court filings indicate Tupperware has a debt of $1.2 billion but assets only worth $679.5 million|James Salvas|CC BY-NC-ND 2.0
Tupperware, the ultimate leftover companion and staple item of every kitchen cabinet, filed for Chapter 11 bankruptcy protection at a Delaware court this week as the brand struggles with relevance amid changing shopping habits.
The 78-year-old brand is in deep financial trouble. Court filings indicate it has a debt of $1.2 billion but assets only worth $679.5 million. Its sales have been declining over the years.
End of an era
The company, known for its durable, long-lasting plastic containers, became a household name through “Tupperware parties” thrown by homemakers. These parties were used to sell colorful containers to attendees and recruit new members.
The direct sales model worked fine during the 1950s. However, these parties lost their buzz over time, and home shopping moved online.
Tupperware tried to keep up. The brand adapted and modernized its sales, but the move came a little too late. In 2022, it partnered with Target and Amazon. By then, it had lost its competitive edge to rivals offering cheaper and more environmentally friendly containers.
CEO Laurie Goldman attributed Tupperware’s financial struggles to the challenging macroeconomic environment over several years. Post-pandemic pressures, such as rising labor, freight, and raw materials (like plastic resin), further strained the business.
Despite difficulties, Tupperware aims to continue selling its products with court approval and hopes to find a buyer.