Tupperware Says Adios to Its Last US Factory
In a significant shift for an iconic brand, Tupperware has announced the closure of its last operational production facility in the United States, located in Hemingway, South Carolina. The move will affect 148 workers, who will face layoffs in stages from September 28, 2024, to January 14, 2025. The company has revealed plans to transition its production efforts to its existing plant in Lerma, Mexico, a location that already manufactures the majority of Tupperware products destined for the US and Canadian markets.
The decision to close the Hemingway plant doesn’t come as a total surprise. Previously, concerns regarding Tupperware’s future viability surfaced when the company engaged financial advisors to address growing doubts about its continuing operations. Shifting manufacturing to Mexico appears to be a tactical move within a broader strategy to navigate through challenging times.
Over recent months, Tupperware’s journey has been anything but smooth. The company has embarked on the sale of real estate assets both within the United States and internationally. Additionally, in April of this year, Tupperware found itself in hot water with the New York Stock Exchange due to a delay in filing its annual report for 2023, receiving a non-compliance notification. The company was given a six-month window, starting March 29, 2024, to submit the required documentation and restore compliance.
Financial struggles aren’t the only issues facing Tupperware. The company has seen its traditional business model, predominantly based on direct sales and the iconic “Tupperware parties,” severely impacted by the COVID-19 pandemic. With lockdowns rendering such gatherings impractical, the company has sought to pivot. This reinvention has led to distribution agreements with retail giants such as Target, signaling a departure from its longstanding multi-level marketing strategy. While such changes are seen as necessary adaptations, they also mark a departure from the core identity that has defined Tupperware for decades.
As Tupperware turns the page on its manufacturing presence in the United States, it signals not only a geographical shift but also a transformation in how the brand seeks to navigate the evolving market landscape. The closure of its Hemingway factory is emblematic of broader changes within the company, as it contends with financial difficulties and shifts in its business approach in an effort to remain relevant in a changing world.
