Tupperware files for bankruptcy

In 1938, Earl Tupper, the founder of the company, purchased pure polyethene (PE) pellets from DuPont. DuPont developed many polymers. This included Vespel, Neoprene, Nylon, Corian, Teflon, Mylar, Kapton, Kevlar, Zemdrain, M5 fibre, Nomex, Tyvek, Sorona, Corfam and Lycra in the twentieth century. Its scientists developed many chemicals, including freon (chlorofluorocarbons), for the industry. 

Using these PE pellets, Tupper developed plastic containers that could be used to keep food airtight. These containers also featured a burping seal that the company would move on to patent. So began the journey of Tupperware.

Notably, the company adopted a unique direct marketing strategy. Called the party plan, this strategy enabled women in the 1950s to earn money without compromising their household responsibilities. Women at parties were encouraged to buy Tupperware products and become sellers at other parties.

The bankruptcy comes after a failure to revive the company after the pandemic. After the announcement, the company’s stocks have reportedly fallen by almost 60%. Tupperware has historically relied on direct marketing for its success, with freelance agents spreading the word about the company’s products. To that end, its expenditure on advertising has been very low.

In the company’s press release, Laurie Ann Goldman, president and chief executive officer of Tupperware, 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. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders”