Tupperware Files for Bankruptcy as Colorful Containers Lose Relevance

By Savyata Mishra and Dietrich Knauth

Tupperware Brands has filed for bankruptcy protection in Delaware, facing significant losses due to a decline in demand for its once-popular food storage containers. The brand’s rise to fame began in the 1950s when women hosted "Tupperware parties" in their homes, seeking empowerment and independence through entrepreneurship.

In recent years, however, Tupperware’s sales have significantly dwindled as the company has struggled to expand its presence in retail stores and on online platforms. Historically, Tupperware has depended on independent sales representatives, but this approach has not resonated with today’s consumers.

In a court filing, Tupperware’s Chief Restructuring Officer Brian Fox noted, "Nearly everyone now knows what Tupperware is, but fewer people know where to find it." The company had previously raised concerns about its viability, citing bankruptcy risks due to liquidity challenges.

Tupperware reportedly carries $812 million in debt, much of which was acquired at a steep discount by distressed debt investors in July. These investors were looking to leverage their position to claim Tupperware’s assets, including its intellectual property, which ultimately prompted the bankruptcy filing.

The company plans to continue operations while entering a 30-day bidding process to identify a buyer for the entire business. James Gellert, executive chairman at the financial analytics firm RapidRatings, stated that despite a recently restructured balance sheet and temporary financial support, Tupperware’s high debt levels, declining sales, and diminishing profit margins proved insurmountable.

Over the years, Tupperware has attempted to revitalize its business, but ongoing issues such as increased labor costs, freight expenses, and rising prices of raw materials like plastic resin have hampered recovery efforts.

In 2023, the company’s stock experienced significant volatility due to "meme stock" phenomena, where retail investors would rally around struggling companies with high short interest through social media coordination.

According to bankruptcy filings, Tupperware’s estimated assets range between $500 million and $1 billion, while its estimated liabilities fall between $1 billion and $10 billion. The company has reported having between 50,001 and 100,000 creditors.

Earlier in 2023, Tupperware had finalized agreements with its lenders to restructure its debt and had engaged an investment bank to explore strategic options.