After Struggling For Years, Tupperware Is Finally Filing For Bankruptcy

A year and a half after household brand name Tupperware announced they were on the verge of financial failure, the plastic container corporation has voluntarily filed for Chapter 11 bankruptcy.

The more than 75-year-old company is well-known among buyers — to the point where any plastic food storage container can colloquially be referred to as a "tupperware" — but increased competition and the struggle to connect with a younger market were cited by CNN as some potential reasons for their downfall. Founded in the 1940s, they were initially sold only through direct, door-to-door sales or on the company's own website, with a Target partnership in 2022 being heralded as a major shift for the brand.

The company did have a moment of hope about a year ago when a smattering of deals and extensions on their debts gave them the cash flow they needed to continue operations. But it wasn't enough to keep them afloat, and plummeting Tupperware shares reflected their continuous financial decline.

Chapter 11 bankruptcy is a common route for beleaguered incorporated businesses that allows them to reorganize their finances, restructure debt, and, often, continue operations throughout the legal proceedings. Tupperware will likely be trying to cut costs, further reduce their $1.2 billion debt, and possibly, although it's unlikely, seek a new buyer for the organization. According to the New York Times, Tupperware reports having more than 5,000 employees and more than 460,000 individual freelance sellers globally, but it's unclear how they will be impacted.

The company will also be reevaluating their business plan throughout the reorganization, focusing on the digital marketing they haven't previously been known for. President and CEO of Tupperware Brands Corporation Laurie Ann Goldman said in a recent statement that "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."