End of an era? Future of 77-year-old Tupperware uncertain as losses mount

Tupperware is seeking potential investors and has engaged with financial experts, facing the risk of collapse if it fails to attract sufficient capital.

“There is substantial evidence doubt about the company’s ability to continue as a going concern,” the company said in a stock exchange filing.

Tupperware has recently received a delisting warning from the New York Stock Exchange after failing to file its annual reports and its share price plunged 50% in one day earlier this week. Tupperware said it is looking into potential layoffs, to monetise some fixed assets, and is reviewing its real estate portfolio to free up cash.

“The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position,” said Miguel Fernandez, president and CEO of Tupperware Brands.

After experiencing a brief sales boost during the pandemic as demand for kitchenware soared, the 77-year-old company failed to maintain its performance and has been struggling to compete with its rivals, including Xerox, Kleenex and Thermos. It recorded a US$28.4 million loss during the fourth quarter, according to the preliminary results released last month.

Tupperware was founded by American entrepreneur Earl Tupper in 1946 and is known for its home product lines. The Orlando-based company — which has its roots in party-plan home sales — withdrew from New Zealand last year after 49 years of operations in the market, but still has stores in many Asian markets, including Vietnam.

GlobalData Retail MD Neil Saunders told CNN that several issues are impacting Tupperware, including a sharp decline in the number of sellers, and a failure to fully connect with younger consumers.

“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge,” he said.

This article was first published by Inside Retail.