‘Party’s Over’: Tupperware Files for Bankruptcy to Restructure Debt After Years of Trouble

(CNN) – Tupperware, known worldwide for its plastic food storage containers, has filed for bankruptcy after years of declining popularity and financial troubles.

“In recent years, the company’s financial condition has been severely impacted by the challenging macroeconomic environment,” Lori Ann Goldman, president and CEO of Tupperware Brands Corporation, said in a statement Tuesday evening.

Chapter 11 bankruptcy allows companies to resolve their financial problems through restructuring. “This process is intended to provide us with essential flexibility as we explore strategic alternatives to support our transformation into a digital and technology company,” Goldman added.

Historically, Tupperware has only sold to consumers through so-called direct sales, most commonly at “Tupperware parties,” similar to the business model of cosmetics company Avon, and it didn’t start selling at Target until 2022. The 78-year-old brand’s years have enabled women to enter the sales business.

“The party is over for Tupperware,” Susannah Streeter, head of money and markets at UK investment platform Hargreaves Lansdown, said in a note. “There is still a chance of finding a buyer for the business, but with plastic no longer considered cool by environmentally conscious consumers, revitalizing the brand will be an uphill struggle.”

Although the brand was once a household name, it has become less popular among younger consumers, unlike some of its competitors.

Tupperware set off alarm bells in April 2023 when it revealed in a regulatory filing that it might close its doors. The Florida-based company said at the time that unless it found more money, it would no longer be able to fund its operations.

Tupperware found a lifeline four months later, when it reached an agreement with its creditors to reduce its interest payments by $150 million, secure $21 million in new financing, extend the deadline for repaying about $348 million in debt and reduce its outstanding debt by about $55 million.

But the company’s financial position continued to deteriorate after the deal.

Tupperware closed its only U.S. factory, in South Carolina, this year, laying off 148 employees, according to the Worker Adjustment and Retraining Notification Act.

The company said Tuesday it will seek bankruptcy court approval to continue operating during Chapter 11 proceedings.

Many companies file for bankruptcy protection to liquidate some operations, eliminate debt, and cut costs. Chapter 11 bankruptcy is a common route.

Tupperware shares have fallen 74.5% this year and last traded at just 51 cents.

This article has been updated with additional information.