The End of Tupperware Parties! The Iconic Plastic Container Maker Is Going Bankrupt

Liquidity problems

The announcement had been in the pipeline for several weeks. The Orlando (southeast) group had explained that it continued to face “significant liquidity problems” and had “doubts about its ability to continue its activity”.

In documents filed in U.S. Bankruptcy Court in Delaware, Tupperware estimates its assets at between $500 million and $1 billion, and its liabilities (capital and debt) at between $1 billion and $10 billion. It lists between 50,000 and 100,000 creditors.

Tupperware had restructured its financial commitments in 2020. Then, in mid-2023, it had managed to rework more than half a billion dollars of its debt.

“By reaching several agreements on its debt, Tupperware had obtained a little respite and a breath of fresh air. Unfortunately, that time has passed and the company is still not in a sustainable position,” noted Neil Saunders, director of GlobalData.

Tupperware shares were suspended from trading on the New York Stock Exchange on Tuesday. The stock had closed at $0.50 on Monday, compared to $2.55 in December 2023.

Plastic, not "fantastic"

The group, emblematic of home sales, has been weakened by the emergence of online commerce, the rise of meal delivery and, in its wake, single-use plastic, which have called its model into question.

It has also been a victim of consumers' desire to access more environmental solutions. "The party has been over for some time for Tupperware", comments Susannah Streeter, analyst at Hargreaves Lansdown.

“Changing shopper behaviors made its containers obsolete as consumers began to wean themselves off their reliance on plastic and find more environmentally friendly ways to store food.”

The company tried to adapt to changing consumer habits by expanding its online sales and entering into distribution agreements with chain stores, but it failed to halt its slide.

According to Neil Saunders, it suffered from a decline in the number of sales representatives, increased competition and cheaper alternatives, as well as a lack of the innovation that had made its name success. "It is very difficult to see how the brand will ever return to its glory days," he noted.

End of glory

Launched in 1946, Tupperware has become a social phenomenon, entering millions of homes around the world, thanks to the efficiency of its network of representatives.

Originally launched in stores, its plastic containers with airtight lids to preserve food longer did not sell well.

The company then came up with the principle of “Tupperware meetings”, demonstrations carried out in the home of a representative for a group of potential buyers.

In recent years, Tupperware has multiplied the special editions and colorful collections, looking for new customers.

In 2017, the company founded by American inventor Earl Tupper still had more than three million representatives worldwide.

It enjoyed a boom period during the Covid-19 pandemic, before seeing its sales erode: the last annual accounts published by the group, those for 2022, reported a turnover of 1.3 billion dollars, or 42% less than five years earlier early.

“There is still a chance of finding a buyer for the company, but with plastic being far from fantastic among environmentally conscious consumers, revitalizing the brand will be an uphill battle,”, Susannah Streeter said.