Legendary Orlando Company Falls To Bankruptcy

When we think about brands that made a large impact on families over the years a lot of different names pop into mind. This company started back in the 1940's and invented a solution to food waste, empowered women, and in some sense originated the concept of social selling, and this once great side hustle is now hanging on by a thread.

Photo byofficial site

Anyone who has purchased food safe containers over the years has probably heard the name Tupperware at some point. This Orlando, Florida-based consumer goods company produced an iconic line of containers, sold mostly via "parties". This sales model typically had a sales rep who would utilize their homes and homes of their friends who may recieve discounts and merch to throw parties and sell the items directly to the audience. Many of the designs while updated on the outside visually maintained the same shape over the years as witnessed below. Who did not drink iced tea out of that pitcher?

Items you may see at a partyPhoto byofficial site

When we think about this sales model it seems like it would not last long term or remain relevant and yet the brand name still has recognition. But that simply may not have been enough as after nearly 80 years the company said it was seeking Chapter 11 bankruptcy protection after struggling to revitalize its core business and failing to sale of the company.

Photo byAmy HirschionUnsplash

Tupperware will seek Court approval to continue operating during the proceedings and remains focused on providing its customers with its award-winning, innovative products through Tupperware sales consultants, retail partners and online. The Company will also seek Court approval to facilitate a sale process for the business in order to protect its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company.

Photo byElena RabkinaonUnsplash

The first hearing will take place September 25th. The company also cited growing public health and environmental concerns about the usage of plastic, a number of internal inefficiencies that made it challenging to operate globally, and the “challenging microeconomic environment” of the last several years for its financial straits. Kirkland & Ellis LLP is serving as legal advisor to Tupperware, Moelis & Company LLC is serving as the Company's investment banker, and Alvarez & Marsal is serving as the Company's financial and restructuring advisor.

Photo byMelinda GimpelonUnsplash

As the company tells it, chemist Earl Tupper found inspiration while creating molds at a plastics factory. He set out on a mission to create an airtight lid seal — similar to the one on a paint can — for a plastic container to help families save money on food waste.

Photo byEmediong UmohonUnsplash

They felt a brief resurgence during the early days of the COVID-19 pandemic, when Americans were cooking and eating more at home. That would not last or save the company as overall sales have been in steady decline over the years due to rising competition from Rubbermaid, OXO and even takeout food containers that consumers recycle.

Following the appointment of a new management team within the last year, Tupperware has implemented a strategic plan to modernize its operations, bolster omnichannel capabilities and drive efficiencies to ignite growth. The Company has made significant progress and intends to continue this important transformation work.

"Whether you are a dedicated member of our Tupperware team, sell, cook with, or simply love our Tupperware products, you are a part of our Tupperware family. We plan to continue serving our valued customers with the high-quality products they love and trust throughout this process," said Laurie Ann Goldman, President and Chief Executive Officer of Tupperware.