Contested food container manufacturer files for bankruptcy

The US brand Tupperware has filed for bankruptcy as it struggles to survive in the face of falling sales.

The company, which makes food containers, said it would seek court approval to sell its business and intends to continue operations.

The 78-year-old company has become so synonymous with food storage that many people use its name when referring to any old plastic container.

Despite attempts in recent years to refresh its products and reposition itself for a younger audience, the company has failed to differentiate itself from the competition.

Last year, the company warned that it could go bankrupt if it could not raise new money quickly.

The company's shares fell more than 50% this week after reports emerged that the company was planning to file for bankruptcy.

After a brief surge in sales during the pandemic as more people cooked at home, the company faced a further decline in demand.

Rising raw material prices as well as higher wages and transport costs have also reduced the company's profit margins.

“Over the past few years, the Company's financial position has been severely impacted by the difficult macroeconomic environment,” said Tupperware CEO Laurie Ann Goldman in a statement to investors.

Tupperware was founded in 1946 by Earl Tupper, who patented the flexible, airtight closure of the containers.

Tupperware represented a major innovation because it used new plastics to keep food fresher longer, which was invaluable when refrigerators were still too expensive for many families.

However, success did not come immediately.

It was the Pioneer Saleswoman Brownie Wise who has helped make the brand a household name in the truest sense of the word.

She developed an approach in which salespeople, mostly women, sold Tupperware to other women in their homes, better known as “Tupperware parties.”

According to the company, Tupperware is now sold in 70 countries worldwide.

“The party has been over for Tupperware for some time now,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

“Changes in shopper behavior have caused the containers to fall out of fashion as consumers have begun to break away from their plastic addiction and find more environmentally conscious ways to store food.”

Ms. Streeter added that “serious issues” in Tupperware's financial reporting had also negatively impacted the company, including the misstatement of results in 2021 and 2022.