Once popular for its colorful food storage containers, US firm Tupperware has filed for bankruptcy. The company succumbed to a plummeting demand for its products.
Tupperware Brands Inc. and some of its subsidiaries on Tuesday filed for Chapter 11 bankruptcy protection in the United States amid dwindling demand for its once-iconic food storage containers.
“Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment,” president and CEO Laurie Ann Goldman said in a statement.
Last year, the company raised “substantial doubt” about its ability to keep operating amid its poor financial position.
Long-drawn struggles
Tupperware witnessed a short-lived boost during the coronavirus pandemic when home cooking fueled demand for its trademark colorful, airtight plastic containers.
After the pandemic, a spike in raw material costs, along with increased labor and freight costs, further made a hole in the company’s margins.
The firm has been trying to revive its business for nearly four years. It reported a fall in sales for six successive quarters since the third quarter of 2021, as inflation continued to hinder its low and mid-income consumer base.
On Tuesday, Tupperware said it would seek court approval to continue operations during bankruptcy proceedings. It added that it would also seek approval for a sale process for the business to protect its brand.
According to the company’s website, Tupperware’s history goes back to 1946 — shortly after the Great Depression — when chemist Earl Tupper “had a spark of inspiration while creating molds at a plastics factory.”
“If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste,” the website says.
