Tupperware, the company that created the iconic plastic boxes, has been forced to file for Chapter 11 bankruptcy. Founded in Orlando, Florida, and known for its food storage revolution, the company has been facing challenges in recent years. It explained poor sales performance, rivalry, and troubles with its direct selling business as factors to its problems.
However, after the Tupperware was introduced the brand’s name was associated with plastic food containers and the company met certain challenges. Tough times have also been experienced by company because it has abandoned direct selling, which used to be its strength. The company also noted increasing pressures regarding plastics, operations internationally, and the difficult business environment of the last few years.
In its bankruptcy filing, Tupperware reported more than $1.2 billion in total debt, with assets totaling $679.5 million. The company employs over 5,450 people in 41 countries and works with more than 465,000 freelance consultants who sell products in nearly 70 countries. Many Tupperware consultants continue to host parties to sell the products, both in-person and online.
Tupperware Financial Challenges
In 1946 when Earl Tupper, a chemist, introduced an airtight plastic container inspired by paint can seals, the brand Tupperware had been established in that time. Tupperware quickly grew to popularity in the 1950s and the 1960s with the use of direct selling method where women hosted parties to market the products and make money out of it.
Even though Tupperware had a moment of relevancy during the first weeks and months of the COVID-19 pandemic, Rubbermaid and OXO are cutting into Tupperware’s business and its cheap, ubiquitous, and accessible products at big-box stores effectively taking the place of Tupperware products.
CEO of Tupperware Laurie Ann Goldman remains optimistic, stating, “We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process.” However, the company’s future remains uncertain, with its lenders seeking to either dismiss the bankruptcy filing or convert it to a Chapter 7 case, which would liquidate the company.
Tupperware is looking forward to coming out of the process as a company with an even stronger focus on digital marketing and it indeed has its work cut out for it if it has to regain the position that it occupied in the past.
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