Tupperware, quite literally the household name in food storage, filed for Chapter 11 bankruptcy late Tuesday amid declining sales and mounting debt.
The well-known food storage company had been in dire straits for more than a year, revealing in April 2023 that it was in danger of going out of business entirely.
Company leaders said the Chapter 11 filing would allow Tupperware to reorganize and emerge with a new business model.
In bankruptcy court documents, the company said it had more than $1.2 billion in total debt and $679.5 million in assets.
“Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family,” CEO Laurie Ann Goldman said in a statement. “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.”
Goldman only joined Tupperware in October 2023, as the company has gone through a tumultuous two years and turned over the majority of its leadership team.
Though Tupperware has long been the biggest name in food storage, its actual sales have declined significantly from 2018, save for a bump during the COVID-19 pandemic.
“It is very difficult to see how the brand can get back to its glory days,” analyst Neil Saunders told The Associated Press on Wednesday.
Founded in 1946 by chemist Earl Tupper, Tupperware became a must-have for families hoping to save leftover food. Saleswoman Brownie Wise was credited with pioneering “Tupperware parties,” where women would sell the containers to their friends.
But while that business model became largely outdated by the 21st century, Tupperware continued relying largely on direct sales. It only started selling on Target shelves in 2022, and its online offerings were limited.
“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,” Goldman said.
Tupperware was also troubled in recent years by financial paperwork errors, as it misstated reports in 2021 and 2022. That left it facing a steep fine from federal regulators for keeping inaccurate books.
With News Wire Services