NEW YORK — The company behind Tupperware, the plastic kitchenware that revolutionized food storage after World War II and became inextricably linked to parties where women seeking financial independence and pleasure in midcentury America sold the colorful wares, has filed for bankruptcy.
Tupperware Brands, the Orlando, Florida-based consumer goods company that makes the iconic line of containers, said it is seeking Chapter 11 bankruptcy protection after struggling to revitalize its core business and failing to secure a tenable buyout offer.
Although it enjoys the same cultural ubiquity as Kleenex, Teflon and other brands whose brand names are eponymous for entire product categories, Tupperware has suffered from declining sales, increasing competition and the limitations of the direct-to-consumer marketing model that once defined its success.
The company said in its bankruptcy filing Tuesday that consumers’ shift away from direct sales, which account for the vast majority of its sales more than a quarter-century after the first Tupperware parties, has hit the storied business hard.
The company also cited growing public health and environmental concerns about plastic, internal inefficiencies that make it difficult to operate globally and the “challenging microeconomic environment” of recent years for its financial woes.
Tupperware said it plans to continue operations during the bankruptcy proceedings and will seek court approval for a sale “to protect” the brand.
Tupperware’s roots date back to 1946. According to the company, chemist Earl Tupper was inspired to create molds in a plastics factory. He set out on a mission to create a tight-fitting lid, similar to that of a paint can, for a plastic container to help families save money on food waste.
The brand experienced explosive growth in the mid-20th century, particularly with the rise of direct sales through Tupperware parties. First held in 1948, the parties were marketed as a way for women to earn extra income by selling the lidded bowls designed to hold leftovers to friends and neighbors.
The system worked so well that Tupperware eventually pulled its products from stores. It also led Tupperware to appoint Brownie Wise, who had come up with the house party idea, as the company’s director, a rare position for a woman at the time.
Over the decades that followed, the brand expanded to include canisters, tumblers, cake plates, and all manner of utensils, becoming a staple in kitchens across America and, eventually, abroad as well. A newspaper reporter posing as a footman at Buckingham Palace snapped photos of royal Tupperware on Queen Elizabeth II’s breakfast table.
The company’s history has also been chronicled on television and stage, with performances in the 2004 PBS film “Tupperware!” and the play “Sealed for Freshness.”
“For more than 70 years, Tupperware Brands has focused on one core purpose: inspiring women to cultivate the confidence they need to enrich their lives, nourish their families and power communities around the world,” Tricia Stitzel, the company’s first female CEO, recently wrote in 2018. “And we continue to make decisions, from our innovative products to our strategic growth strategy, that reflect that purpose.”
In the 2000s, Tupperware also diversified beyond its containers by acquiring beauty and personal care companies, many of them direct-selling brands like Avroy Shlain, Fuller Cosmetics, NaturCare, Nutrimetics and Nuvo.
Financial analysts, however, have criticized Tupperware in recent years for clinging to the direct-sales model and failing to evolve with the times, particularly given the large number of women who work outside the home.
“The reality is that Tupperware’s decline is not new,” Neil Saunders, managing director of GlobalData, said on Wednesday. “It’s very hard to imagine how the brand could ever return to its glory days.”
The company’s sales picked up somewhat at the start of the COVID-19 pandemic, when Americans were cooking and eating more at home. But overall sales have been steadily declining over the years due to increasing competition from Rubbermaid, OXO and even takeout containers that consumers are recycling. Vintage Tupperware also remains in high demand as a collectible.
Overall, sales of food storage supplies are up 18% compared to before the pandemic, according to figures from market research firm Circana. But despite that growth — and the continued popularity of food storage videos on social media — Tupperware’s problems persist.
Saunders said many consumers have turned to cheaper storage brands they can find at Target and Walmart. Amazon, the king of online retailers, also has its own line.
Historically, Tupperware has marketed its products as high-quality, durable items. But consumers looking for durability are looking for more durable materials, such as glass and stainless steel, said Jennifer Christ, manager of market research and consumer insights for the Freedonia Group.
“There is less brand loyalty than there used to be,” Christ said.
In recent years, Tupperware has tried a number of things to expand its reach and attract new customers. It began selling its products on Amazon as well as in Target and Macy’s stores. In 2019, the brand also launched a line made from sustainable materials and expanded it two years later.
But financial difficulties continued to mount.
Last year, the company sought additional financing as it warned investors about its ability to sustain operations and its risk of being delisted from the New York Stock Exchange.
The company received an additional notice of noncompliance from the NYSE for failing to file its annual results with the Securities and Exchange Commission earlier this year. Tupperware has continued to warn about its ability to stay afloat in recent months, with a securities filing in August highlighting “significant liquidity issues.”
The company’s shares have fallen 75% this year.
In its bankruptcy filing Tuesday, Tupperware listed more than $1.2 billion in debt and $679.5 million in assets. The company currently employs more than 5,450 people in 41 countries and works with more than 465,000 freelance consultants who sell products in nearly 70 countries. In India, Tupperware was launched as a way for women to own their own businesses.
Many Tupperware sellers sell their products online, but many also sell at Tupperware parties held in their homes or at neighborhood gatherings. In its filing, the company said there are currently no changes to the sales agreements for Tupperware Independent Consultants.
Tupperware also emphasized its goal to “further advance Tupperware’s transformation into a digital and technology-driven company,” possibly signaling a shift toward greater reliance on sales from the brand’s website or perhaps more online-focused marketing, though the company did not provide exact details.
In a statement, Laurie Ann Goldman, Tupperware’s president and CEO, acknowledged Tupperware’s recent financial struggles and said the bankruptcy process is intended to provide “critical flexibility” to the company as it continues its transformation. The brand, she said, is not doomed to disappear.
“Whether you are a dedicated member of our Tupperware team, sell, cook or simply love our Tupperware products, you are 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 journey.”
The company’s bankruptcy petition, however, faces opposition from Tupperware’s new creditors, who want the petition dismissed or converted to a Chapter 7 bankruptcy proceeding, which would result in the company being liquidated. Alternatively, they are asking the court to allow them to file lawsuits against the company, which could allow them to collect on debts owed to them.
