Tupperware’s Future Is Uncertain, Company Says

The food storage brand released a statement saying there is “substantial doubt” it will be able to avoid bankruptcy.

Tupperware, the iconic food storage brand that exploded in popularity through home sales parties (the first taking place in 1949), has enlisted the help of financial advisers to determine if the company will be able to continue or have to file for bankruptcy—ending an era that lasted 77 years.

The Orlando-based company announced in an April 7 press release that there is “substantial doubt” that the business will be able to stay afloat without additional funds and that the company is exploring options to fix the problems brought on by the pandemic, inflation, and competitors. To remedy its financial shortfall, leaders are engaging in conversations with potential financial partners, selling real estate holdings, and raising capital from investors.

Tupperware Warns Company Could Go Bankrupt
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“Tupperware has embarked on a journey to turn around our operations, and today marks a critical step in addressing our capital and liquidity position,” said Miguel Fernandez, president and chief executive officer of Tupperware Brands, in a statement. “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.”

According to an article from CNN, several issues are contributing to Tupperware’s financial shortcomings, including a “sharp decline in the number of sellers, a consumer pullback on home products, and a brand that still does not fully connect with younger consumers.” In an attempt to mitigate the latter, Tupperware partnered with Target last year and has released products in new colors and patterns.

Due to these ongoing issues, on April 3 the company was officially notified that it was at risk for being delisted from trading in the New York Stock Exchange at any time.

Few homes were without Tupperware in the decades following its debut, and the food storage brand has stood the test of time for nearly eight decades. The home party business model appealed to homemakers during the company’s earlier years because of the quality of the products, making them easy to sell,  and the chance to socialize with friends while shopping for Tupperware collections. For many women, hosting Tupperware parties was an opportunity to earn money while still working inside the home. While Tupperware parties have become fewer and fewer in the United States, home sales are a significant source of revenue in other parts of the world.

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