Why did Tupperware file for bankruptcy?

Iconic plastic container brand Tupperware has filed for bankruptcy, after years of financial crisis resulting in debts worth $700 million.

This week, the container manufacturer has broken the conditions of the agreement with its debtors to repay them, even after having negotiated the deal this year, in the face of the total collapse of its sales. In March, the company already warned that its liquidity was at rock bottom and that any complication that arose would force them to close the business.

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An endless descent: Why did Tupperware file for bankruptcy?

About to turn 80 years old, Tupperware has been warning for years about the constant decline in its revenue. Increasing competition over the years combined with weakened demand took a toll on the brand.

The company experienced a slight resurgence during the Covid era, as home cooking became prevalent, and left-overs became more common.

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However, this push from the pandemic didn’t last long. Apart from falling demand, the company has also faced higher costs resulting from rising prices for raw materials such as plastic resin, rising labor costs and more expensive transport. It has accumulated six consecutive quarters of slumping sales.

With the high inflation rates of recent years, consumers have opted to buy similar products at a lower price and with similar quality, which are available at retailers like Amazon and Walmart. Other environmentally conscious customers preferred to buy from companies that provided more eco-friendly products for food storage.

In 2022, the firm announced that it had reduced its sales force by almost 20%, while maintaining 300,000 independent sellers affiliated with the brand. The situation of instability was continuous and in June of this year it presented plans to close its only remaining factory in the United States, laying off 150 employees.