Tupperware Brands, is known to be the company that has effectively revolutionized food storage decades ago. Recently it has filed for Chapter 11 bankruptcy protection.
Tupperware which is based in Orlando, Fla., plans to effectively continue operating during the bankruptcy proceedings. It will also seek the court approval for a sale. This will be done in order to protect its iconic brand as thought by the company before the midnight on Tuesday. Apart from all of that, the company is seeking bankruptcy protection amid the growing struggles to revitalize its business.
Tupperware sales growth has improved in some amount during the early days of the COVID-19 pandemic. However, the overall sales have been in steady decline. This was seen since 2018 due to the rising competition. Plus, the financial troubles have continued to pile up for the company thoroughly.
The doubts around Tupperware’s future have floated around in the environment for a considerable period of time. Last year, the company sought additional financing. This came into place as it had warned investors about its ability to stay in business and its risk of being delisted from the New York Stock Exchange.
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The Tupperware company has as of now received an additional non-compliance notice from the NYSE. This was given for failing to file its annual results with the U.S. Securities and Exchange Commission which was noted earlier this year. Plus, the Tupperware firm had continued to warn about its ability to stay afloat in more recent months. This was seen even with an August security filing pointing to significantly liquidify the challenges.
Furthermore, in Tuesday’s bankruptcy petition, Tupperware reported more than $1.2 billion US in total debts. It also reported $679.5 million US in total assets. Along with it, the shares for the company have fallen to a figure of around 75 percent this year. This closed Tuesday at about 50 cents apiece.
“The reality is that the decline at Tupperware is not new,” Neil Saunders, managing director of GlobalData, said in a Wednesday commentary. “It is very difficult to see how the brand can get back to its glory days.”
Saunders explained that many consumers have been migrating to cheaper home storage brands. He also went further into noting that competition has intensified over the years. This was seen particularly with the rise of online platforms like Temu and retailers like Target are also beefing up their own home storage and kitchenware brands.
Looking into Tupperware: How Far Has it Come?
Tupperware has its roots which date back to 1946. According to the company’s website, shortly after the Great Depression, the chemist Earl Tupper found inspiration while creating molds at a plastic factory. This was shortly when he was setting out on a mission to create an airtight seal for a plastic container. This was similar to that on a paint can, to help families save money on food waste.
The brand experienced a range of explosive growth in the mid-20th century. This was particularly with the rise of Tupperware parties, which was first held in 1948. Tupperware parties notably gave multiple women a chance to run their own businesses out of their homes. This was via selling the products within social circles too.
The system worked so well that Tupperware eventually removed its products from the stores. Plus, in Tuesday’s bankruptcy announcement, the company maintained that there were no current changes in relation to the Tupperware’s independent sales consultant agreements.
Is the Brand Closing its Doors Then?
According to the court documents which were published Tuesday, Tupperware currently employs more than 5,450 employees across 41 countries. It also additionally partners with a global sales force of over 465,000 consultants who sell products on a freelance basis in nearly 70 countries.
Tuesday’s announcement also pointed to aimed to further advance Tupperware’s transformation into a digital-first, technology-led company. This has possibly got into signalling a move toward the increased reliance of sales on the brand’s website. It could also mean perhaps a more online-focused marketing, although the company did not provide exact specifics.
In a statement, Tupperware president and CEO Laurie Ann Goldman acknowledged about the company’s recent financial struggles. Statements stated that the bankruptcy process is meant to provide “essential flexibility.” She also maintained that the brand was not going anywhere.
“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,” 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, who has previously served as CEO of Spanx, was appointed as Tupperware’s CEO in October 2023 as part of larger changes in leaadership.