Tupperware, the iconic US-maker of plastic food storage containers, is at risk of collapsing unless it can quickly raise new financing, according to a recent statement. Shares in the 77-year-old company fell nearly 50% on Monday after it warned that there was “substantial doubt about its ability to continue as a going concern.” Tupperware has been attempting to reposition itself to appeal to younger customers, including partnering with US retail chain Target and expanding into cooking products such as microwavable grills. However, despite these efforts, the company has struggled to halt a slide in sales.
Tupperware became a household name in the 1950s and 1960s when people held “Tupperware parties” to sell the containers. The company still employs a direct sales force and sells goods on its website. It has also been attempting to change its image from house parties in years gone by to younger shoppers. Tupperware said it is working with financial advisers to secure more money and investment while also exploring the possibility of selling property and cutting jobs.
The firm’s financial results for 2021 and 2022 as well as interim figures for 2021 and Q1 2022 were “misstated” due to accounting errors in how it accounted for taxes and leases. Tupperware warned that its shares were in danger of being delisted from the New York Stock Exchange, as it had not yet filed its annual report. The company has already renegotiated its loans three times since August 2022, and it said it was struggling with higher interest costs on its borrowings while trying to turn the business around.
The Tupperware story is a reminder that even iconic brands with long histories are not immune to financial difficulties. As businesses and consumer behavior change, it’s essential to adapt and innovate to stay relevant. However, it remains to be seen whether Tupperware can weather this storm and continue to thrive in the future.
Source: BBC
