Tupperware’s airtight containers, which have become synonymous for food storage, appear to be on their way out. The American kitchenware firm has filed for bankruptcy in its struggle to survive. Tupperware Brands is asking the court for permission to sell the company while it’s still operating. The brand shot to fame in the 1960s & 1970s through its “Tupperware Parties”.
The Florida-based 78-year old company has been struggling since the short-lived boom during the pandemic when people cooked more at home in certain countries and saved leftovers. This boosted demand.
Tupperware’s old-fashioned image and products have been updated in recent years by using sustainable materials such as glass and stainless steel. However, it has lost out to competitors who make containers that are cheaper and more environmentally friendly.
The company’s margins have been hit by a rise in raw material costs, such as plastic resin and labour after the pandemic. Laurie Ann Goldman took over Miguel Fernandez’s role as chief executive of the company in October. She said: “The challenging macroeconomic climate has had a severe impact on the financial position of the company for the last several years.”
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According to bankruptcy filings, the company had between 50,001 to 100,000 creditors. Its estimated assets ranged from $500 million to $1 Billion and its estimated liabilities ranged from $1 Billion to $10 Billion.
In recent years, the company has found it difficult to differentiate itself from its competitors In 2023, the company announced that high interest rates were driving up its borrowing costs and agreed to a restructure of its debts. The company also hired Moelis & Co, an investment bank to explore its strategic options.
Earl Tupper founded the company in Massachusetts in 1946. The company is known for its innovative kitchen gadgets, storage container, crockery, and other kitchen and home tools.
The company was also known for its sales strategy: a network housewives invited their friends to test the products. One early strategy was called “carrot-calling”, where a saleswoman would challenge one neighbour to store a carrot in tupperware and the other in their regular container, and then see which lasted longest. It was rare to see a competition in those days.
Tupperware parties would follow soon after, capitalising off the excitement about the prospect of preserving root vegetables for longer. A friend or a friend of a neighbor would invite housewives to a demonstration of the product, and then offer them the opportunity to purchase it. These parties began in 1950 and were introduced to the UK in 1961. They became a way for women to make money at home.
Even the royals liked it. In 2003, an undercover reporter from the Daily Mirror reported that Buckingham Palace stored its breakfast cereal in Tupperware. Tupperware closed its UK operations the same year despite the royal endorsement. They claimed that their direct sales model did not work.
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