The brand's history and unique position in American culture over the decades has resulted in widespread media interest and coverage, providing a greater audience with details about the firm's struggles.
"We appreciate the many years of service that the employees of our Hemingway facility have dedicated to our beloved brand, and our goal is to work with them to ease this transition," states the letter from Todd Greener, chief supply chain officer for Tupperware, to the state outlining the closure.
The publicly traded company has repeatedly warned investors through filings with the U.S. Securities and Exchange Commission the firm might go out of business.
Tupperware, as a way to raise additional money, also sold a warehouse and office in Indonesia in June 2023 for $12.2 million resulting in net proceeds of $11.3 million. The warehouse was leased back for three years and the office space for two.
Money from these sales went to debt reduction and did not aid in the day-to-day costs of operating the company.
The Orlando, Fla.-based company famously attached itself to the American psyche in the 1950s through its famed approach to in-home sales through Tupperware parties, usually hosted by women. This gave homemakers a way to bring in income for their families at a time when few women worked outside the home.
For decades, the at-home model was successful, with Tupperware able to charge premium prices for their products that have a reputation for quality. But with financial problems plaguing the company in recent years, Tupperware has moved to a multichannel marketing approach, selling some items at Target stores and just recently announced a deal with Macy's to carry Tupperware.
A quick search on online retailer Amazon also reveals a wide variety of Tupperware products available through that outlet.
Tupperware, seeking to boost sales through traditional retailers and online sales, is attempting to walk a line between those outlets and the company's traditional in-person salesforce. Independent sales consultants, which ultimately compete with retailers for sales, were slated to be at select Macy's stores earlier in June to help demonstrate products and provide food storage information.
"We're focused on driving innovative brand experiences that propel growth across our selling models," Tupperware Chief Commercial Officer Samantha Lomow has said in a statement.
Tupperware was founded in 1942 by Earl Tupper and launched its first polyethylene food container in 1946. Brownie Wise joined the company in 1951 and launched the Tupperware party sales system that led to decades of sales success.
The company has come to rely on international sales as U.S. Tupperware parties went out of vogue over the years.
In a recent filing with the U.S. Securities and Exchange Commission, the company indicated distribution of products in more than 70 countries primarily through approximately 593,000 independent sales representatives. Of those people, an average of 274,000 were active in any given week during the quarter ended Sept. 30, 2023.
"The company offers individuals an opportunity to build a business as a meaningful way to make money and impact women, families and communities around the world," a portion of an SEC filing states. International operations accounted for about 90 percent of the company's sales during the third quarter of 2023.
Workers in South Carolina will begin losing their jobs Sept. 28 and receive outplacement services from the company. Eligible employees also will receive "benefit and severance packages," the company said.
Job losses will take place in waves, beginning in a period from Sept. 28 to Oct. 12 and then again Nov. 2 to 16, the WARN letter states. More people will be laid off Dec. 14 to 28 and Dec. 31 to Jan. 14.
There are nearly 30 job descriptions on the WARN letter, but the bulk of the workers losing their jobs fall into a handful positions. They include 26 order inspectors, 31 material handlers, 14 packing operators, 21 production associates, and 14 technicians.
Tupperware, in the June 13 email exchange, indicated the company has other manufacturing sites in China, India, Belgium, Brazil, South Korea, Mexico, Portugal and South Africa.
"It's important to note this decision is not a reflection of the performance of the Hemingway team. We appreciate each of our valued team members and the many years of service they have dedicated to our salesforce and to the company," the company said in the email.
"Tupperware has always been a business focused on people, so we will take important steps to take care of our Hemingway team during this transition."
This includes "offering early retirement and severance packages to eligible employees, providing outplacement services, and working with other businesses on a job fair for potential employment opportunities," the company said.
For many years, Plastics News has estimated Tupperware's North American injection molding sales. The company peaked in our ranking in 2003 with an estimated $276 million in North American molding sales, all from the Hemingway plant.
Tupperware's stock, which was trading at $1.54 per share at one point June 13, sold for more than $90 per share about a decade ago.
