Tupperware files for bankruptcy after struggle to compete with copycats

Brand became a household name in the 1950s and ‘60s, but its patent only lasted for 20 years

Tupperware has filed for bankruptcy in the face of mounting losses after a struggle to compete with newer rivals.
The kitchenware company and some of its subsidiaries filed for Chapter 11 bankruptcy protection in the US, the firm announced on Wednesday. 
Founded in 1946 in Massachusetts by Earl Tupper, Tupperware invented an air-tight seal for its plastic containers that helped keep food fresher for longer. 
The brand became a household name in the 1950s and 1960s after the success of its Tupperware parties, where housewives hosted gatherings where each bought food in its containers and the products were available for sale.
However, the company’s patent only lasted for 20 years and in recent years Tupperware has struggled to compete with increasing competition from cheaper, non-branded plastic food containers. The proliferation of free takeaway boxes in the post-pandemic surge in food deliveries has also been a challenge. 
The 78-year-old company recently tried to boost revenue by remarketing itself towards a younger audience amid concerns that customers were no longer connecting with the brand.  
Tupperware has also struggled in the face of rising costs, with the price of everything from plastics to shipping rising sharply in recent years.
Laurie Ann Goldman, chief executive, said: “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment.
“As a result, we explored numerous strategic options and determined this is the best path forward.”
The food container maker has liabilities of between $1bn (£760m) and $10bn with assets of $500m and $1bn, according to bankruptcy filings submitted to Delaware’s bankruptcy court.
Bankruptcy protection will allow it to escape the pursuit of creditors and let executives try and sell the business to keep it as a going concern. 
Tupperware warned in April that it had “substantial doubt” about its ability to remain in business as it grappled with slumping sales. 
In June, Tupperware announced plans to lay off 148 employees by closing its last remaining US factory in early 2025, shifting production from South Carolina to Mexico. 
The company has spent months negotiating with lenders over how to manage more than $700m in loans, which it struggled to repay because of higher interest rates. 
Tupperware on Wednesday noted that it has made “significant progress” in modernising its operations and improving efficiencies following the appointment of a new management team in the past year.
The company has hired advisers from Chicago-based law firm Kirkland & Ellis and restructuring firm Alvarez & Marsal to oversee the bankruptcy proceedings.