Tupperware Brands warned that it has been struggling to repay more than $700 million USD in debts and now it's preparing for bankruptcy.
👉 Background: Tupperware Brands revolutionised the kitchen storage game when it patented the airtight sealing containers back in 1940. But lately, things haven’t been that tight for them.
👉 What happened: Tupperware Brands warned that it has been struggling to repay more than $700 million USD in debts. To turn the business around, it made plans to shut down its only US factory, lay off 150 employees and also replace its CEO and several board members.
👉 What else: These moves have been too little too late for Tupperware as it prepares to file for bankruptcy as soon as this week. Tupperware’s been struggling to stay relevant and maintain their market share against competition. Its old-school sales model hasn’t quite adapted to the new ways of the world.
💡In sales, standing still means falling behind. When Tupperware started out, it had a unique marketing strategy know as "Tupperware parties", where guests would get a look at Tupperware products up close and personal.
💡This model has continued into this decade. In fact, Tupperware Brands still had more than 300,000 independent salespeople as of 2022. But as times and values have changed, Tupperware hasn’t been able to keep up the hype.
💡As more companies produce airtight sealing containers, Tupperware hasn't been able to differentiate its product or sales model enough to be remain relevant.
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