Tupperware, a US-based globally popular manufacturer of plastic storage containers for home and kitchen uses has filed for bankruptcy. The company has been struggling financially due to factors like the pandemic, impact of Russia’s invasion of Ukraine, increased competition and changing consumer habits.
Its insane reliance on direct-selling blowed back on its face big time especially during and after the pandemic. 90% of Tupperware's sales came from direct selling, compared to just 4% for the industry overall. This over-reliance hampered the company’s ability to develop an omnichannel strategy and modernize its distribution infrastructure.
It has filed for Chapter 11 bankruptcy protection on September 17 at the U.S. Bankruptcy Court for the District of Delaware. Chapter 11 bankruptcy protection allows Tupperware to continue operations while restructuring its debt and exploring strategic alternatives to transform into a digital-first, technology-driven company.
Companies like General Motors and Marvel Entertainment have successfully emerged from Chapter 11 in the past. Loyal customers of the brand are hoping the same to happen to it.
Insane reliance on direct selling breaks Tupperware! company files for bankruptcy protection in USA
- by CC Web Desk
- Sep 19,2024