Iconic American homeware brand to file for bankruptcy after 78 years

Tupperware, the iconic American brand known worldwide for its plastic food containers, is on the brink of bankruptcy.

The 78-year-old company has been fighting for new life for years.

According to Bloomberg, the company, which has more than $700 million in debt, could file for bankruptcy as early as this week.

Tupperware was founded in 1946 by chemist Earl Tupper. His airtight plastic containers helped preserve food for families still struggling after the war and the Great Depression.

Tupperware’s popularity soared in the 1950s when the products were sold at parties for suburban housewives.

It still relies on direct sales from its army of 300,000 local agents who will be hit if the company goes under, but for many it is a vital source of income.

But the products are also sold in major stores like Walmart and Target.

Tupperware warned in March The company is unlikely to survive due to declining demand for plastic packaging and mounting debt.

In June, the company announced it would close its last U.S. factory and lay off 150 workers, moving the work to Mexico to take advantage of lower wages there.

The factory in the small town of Hemingway, South Carolina, has produced billions of units of this kitchen cabinet staple since it opened 48 years ago.

The closure, which will take effect later this year, is a huge blow to the 148 workers at the Williamsburg County plant.

Production will be moved to Lerma, Mexico, where the company says it already makes products for the US and Canada.

Tupperware opened the South Carolina plant in April 1976 to meet demand east of the Mississippi River, because the company was growing rapidly.

In 1993, the 900,000-square-foot factory produced 173 million tubs and containers made from Tupperware’s signature colorful plastic.

But when major retailers started offering their own versions, sales plummeted and layoffs occurred: 300 in 1996 and 250 in 2005.

The Rise and Fall of Tupperware

After Earl Tupper founded the company in 1946The popularity of her products increased dramatically in the 1950s.

This was partly due to the iconic ‘Tupperware parties’, where a salesperson would visit someone’s home to demonstrate and sell the containers.

Since then, these celebrations have captured the imagination of the general public.

For example, Dixie Longate is a drag queen persona known as the “Tupperware Lady.” She is played by actor Kris Andersson and is known for her comedy sketches in which she sells plastic wares.

The town of Hemingway will be affected by the closing of the factory

Production is being moved to Tupperware’s factory in Mexico

Dixie Longate, aka the Tupperware Lady, performs in Westwood, California

Tupperware Brands said in an SEC filing Friday that its business may not survive

A group of unnamed women attend a Tupperware party, some wearing hats made from Tupperware products, circa 1955

The Covid-19 pandemic boosted Tupperware sales as families stayed home and cooked more meals at home.

Since then, the company has struggled with disappointing sales and mounting debt, pushing its share price to an all-time low.

In June it had dropped to $1.50, down from a peak of nearly $100 in 2013. When news of the bankruptcy broke on Monday, the price fell from $1.20 to 50 cents.

Tupperware is the latest household name to consider bankruptcy this year.