Tupperware party’s over as company files for bankruptcy

The party appears to be over for Tupperware, whose airtight containers have become synonymous with food storage. The American kitchenware company has filed for bankruptcy as it battles to survive.
Tupperware Brands, which shot to prominence in the 1960s and 1970s with its “Tupperware parties”, is seeking court permission to start a sale of the business while it continues to operate.
The 78-year-old company, which is based in Florida, has struggled since a short-lived boost during the pandemic, when more people in some countries cooked at home and kept leftovers, reviving demand.
Despite attempts to freshen up its old-fashioned image as well as its products in recent years, such as using more sustainable materials including glass and stainless steel, Tupperware has lost its edge to rivals that make cheaper and more environmentally friendly containers.
Sales have fallen and a post-pandemic jump in the cost of raw materials such as plastic resin, labour and freight has hit its margins.
Laurie Ann Goldman, who took over from Miguel Fernandez as the company’s chief executive in October, said: “Over the past several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.
“As a result, we explored numerous strategic options and determined this is the best path forward. 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 better positioned to serve our stakeholders.”
The company listed $500 million to $1 billion in estimated assets and $1 billion to $10 billion in estimated liabilities, according to the bankruptcy filings, which showed that it had between 50,001 and 100,000 creditors.
In 2023 the company said high interest rates had pushed up the cost of its borrowing and agreed to a restructuring of its debts. It also hired the investment bank Moelis & Co to help explore strategic options.
Founded by Earl Tupper in Massachusetts in 1946, the company became famous for its innovative products, including kitchen gadgets, storage containers, crockery and other tools for the kitchen and home.
It was also famous for the way its products were sold: through a network of housewives who invited their friends to try them out. An early strategy was “carrot calling”, in which one of the saleswomen would challenge her neighbours to store one carrot in an airtight Tupperware box and another in their usual container and see which lasted longer. In those days it was rarely a contest.
A Tupperware party would soon follow, capitalising on the excitement over the prospect of keeping root vegetables fresh for longer. Housewives would be invited by a friend, or friend of a friend, to demonstrations of how to use the products, followed by the chance to buy. The parties, which began in 1951 and came to the UK in 1960, became sociable ways for women to earn money from home.
The idea even won over the royals. In 2003 an undercover journalist from the Daily Mirror was employed at Buckingham Palace and reported that the family stored their breakfast cereal in Tupperware. Despite the royal endorsement, Tupperware shut its operations in the UK the same year, saying its direct sales model was not working.