Tupperware Brands (TUP) has just made a startling business move. The company filed for Chapter 11 bankruptcy to reorganize its debts and prevent an ad hoc group of its lenders from acquiring its business through foreclosure.
"Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment,” said Tupperware CEO Laurie Ann Goldman in a press release. “As a result, we explored numerous strategic options and determined this is the best path forward.”
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In the bankruptcy filing, which was filed on Sept. 17, Tupperware claims that years of declining sales, which have been exacerbated by evolving consumer shopping habits, led to the tough decision. One major shift that the company listed was the growing anti-plastic movement, which involves consumers avoiding plastic food containers due to fear of ingesting microplastics and chemicals.
“The company was founded around a solution to reduce food waste and has a longstanding commitment to sustainability, but recent years have been marked by a general resurgence in hesitancy regarding plastics (especially plastics containing BPAs),” said Tupperware in the filing. “These developments have presented headwinds for the company, which has had to closely monitor customer sentiment, combat misconceptions about its products, and, at times, reconfigure its product offerings.”
Tupperware makes major change amid growing concerns over plastics
Tupperware was invented in 1946, and it is made up of plastics such as polyethylene and polypropylene, which are found in most plastic products. Both compounds are considered safe, and have been approved by the U.S. Food and Drug Administration to use in food containers, but both have been found to leach unknown chemicals into food and drinks when exposed to high temperatures.
Some of these leached chemicals can lead to health issues such as infertility and certain cancers.
Polycarbonate is another plastic that is commonly used in food containers, which can leak BPA, a chemical that has been linked to reproductive issues. In March 2010, Tupperware stopped selling products in the U.S. and Canada that contain polycarbonate, replacing it with materials that are BPA-free, amid growing concerns of the compound’s effects on human health.
Consumers are starting to avoid plastic food containers
As concerns regarding plastic containers being used for food storage continue to grow, there has been an increase in demand for nonplastic food containers such as glass, stainless steel, bamboo, etc., according to a recent report from Research and Markets.
Some consumers have even taken to social media to issue warnings about the dangers of using plastic containers to store food, all while promoting usage of glass containers.
@cleankitchennutrition ❌Ditch the plastic and go for this! #costcofinds #plastictupperware #glassware
♬ original sound - Clean Kitchen Nutrition
@healthwithhunter Stop using plastic tupperware! #health
♬ original sound - HEALTH WITH HUNTER
As the anti-plastic trend continues to become more popular, it is no surprise that it has been a contributing factor to shrinking Tupperware sales. The last time Tupperware released an earnings report was in March 2023, which detailed its fourth-quarter earnings for 2022. In the report, it revealed that during the quarter, its net sales decreased by 20%, compared to the same time period in 2021.
After filing for bankruptcy, Tupperware will be working on bolstering its brand. In the company’s bankruptcy announcement, it revealed that it will be seeking court approval to sell its business in an effort to “protect its iconic brand and further advance Tupperware's transformation into a digital-first, technology-led company.”
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