Out of jars? Tupperware to declare bankruptcy and carry out mass layoffs after 80 years of history

Legendary plastic container maker Tupperware, which for decades reigned supreme in kitchens and on shelves, is on the verge of filing for bankruptcy and facing mass layoffs.

Yes, my dears, the pot is empty – or rather, the production line of one of the most iconic brands in the world is empty. Tupperware, once a symbol of organization and efficiency in kitchens, is heading for bankruptcy. With 80 years of history, the company will carry out mass layoffs and end a cycle that has spanned generations.

According to information from Bloomberg, Tupperware may declare bankruptcy in the next few days, a fact that has shaken the financial market. Following the announcement, the company's shares plummeted more than 59% to $0,4875 before being suspended from trading on the New York Stock Exchange.. The pot giant had already signaled the possibility of bankruptcy last year, but now the situation seems irreversible.

Crisis and mass layoffs at Tupperware

With assets estimated at between $500 million and $1 billion, but liabilities ranging from $1 billion to $10 billion, Tupperware is struggling to stay open. The company is in negotiations with creditors to try to manage a debt that exceeds US$ 700 million. Even with agreements that alleviated part of the debts, the financial situation only worsened.

The impact will be huge, and mass layoffs are inevitable. Tupperware had already considered closing its only factory in the United States, which would result in the layoff of 150 employees. Now, with bankruptcy looming, This number could increase dramatically, affecting thousands of workers directly and indirectly linked to the brand..

Tradition versus innovation

Founded in 1946 by Earl Tupper, Tupperware revolutionized the market with its plastic products and the famous hermetic seal. The company built its empire through an innovative sales method: Tupperware parties, which became popular in American homes.. However, over the years, the formula has worn out.

The company failed to keep up with the shift to digital retail, where consumers began to seek out cheaper and more sustainable alternatives. While platforms like Amazon and Walmart dominated the online market, Tupperware remained dependent on its direct sellers. In 2022, even with 300 resellers, the company's financial crisis deepened.

The end of an era at Tupperware

Even with changes in leadership and restructuring attempts, Tupperware was unable to adapt to the new economic and digital scenario. The pandemic brought a temporary respite to sales, but the effect was brief. The company, which was once synonymous with quality and innovation, now faces the bitter fate of closing its doors.

The possible announcement of bankruptcy marks the end of an era. And along with it comes mass layoffs that will affect not only Tupperware employees, but also the entire distribution network and resellers who, for decades, kept the brand alive.

PFor many, it will be difficult to imagine the kitchen without those classic pots. But like everything in life, even the strongest plastics come to an end.

With the end of Tupperware and the mass layoffs, the question remains: are traditional brands doomed if they don't adapt to the digital world, or is there still room for rescuing icons of the past? What do you think?