2024-09-18 23:30:03
Tupperware, the brand synonymous with food storage in American homes, has filed for bankruptcy after years of struggling with its business model and debt.
The brand wrote itself into American culture after its founding in the 1940s, popularizing the “party” style of sales for its tight-sealing tumblers, bowls and cookware. It revolutionized the woman’s role in the kitchen and the U.S. economy.
To this day, most of Tupperware’s sales are done by tens of thousands of individual dealers hawking bowls, baking pans, carafes and vintage tumblers in each other’s living rooms, on Facebook or on other social networks.
The strengths of this model recently have “begun to turn into weaknesses,” Tupperware said in its bankruptcy filing, in part because it came at the cost of developing an online strategy. The company says it’s planning “no current changes” to agreements it has struck with independent sales consultants.
Except for a spike in kitchenware shopping during the pandemic, interest in Tupperware from either shoppers or sellers has waned in recent years. And new costs, including pricier raw materials, labor and shipping, have stacked up.
“Over the last several years, the Company’s financial position has been severely impacted by the challenging macroeconomic environment,” CEO Laurie Ann Goldman said in a statement. “[The bankruptcy proceeding] 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 began warning of a potential bankruptcy in early 2023. Its debt had ballooned to more than $700 million. It had faced a steep federal fine for “failing to maintain accurate books and records.”
Tupperware Brands then closed its only U.S. factory, in South Carolina, laying off 148 workers and moving more operations to Mexico. In October of last year, it replaced several of its leaders, including a new CEO who previously ran the shapeware brand Spanx and cosmetics stalwart Avon North America.
But any turnaround crumbled under the weight of debt payments, which Tupperware has missed despite extensions. Lenders and management have struggled to lock in a long-term deal. The company has missed required regulatory disclosures. Its value has collapsed from $93 per share at the peak in 2014 to less than 50 cents per share on Monday.
Founded right after World War II, Tupperware was created by chemist Earl Tupper, who invented a flexible but airtight double-seal, said to be inspired by the paint can. But the company’s lasting impact is credited to Brownie Wise, who convinced Tupper to sell his work at parties, oversaw their runaway success and became the first woman on the cover of Business Week for enabling generations of homemakers to see themselves as saleswomen.
Copyright 2024 NPR
