Tupperware warns it will go bust unless it can improve finances
Tupperware, the US maker of reusable food storage containers, has warned that it will go bust unless it can quickly improve its finances.
Shares in the business tanked nearly 50 per cent on Monday after it revealed there was “substantial doubt” about its ability to continue.
The 77-year old brand said that it was “actively engaging” with financial advisors to secure emergency funds.
“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.
“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,” he added.
It is also exploring whether it can sell any property and cut jobs.
Tupperware grew in popularity in the 1950s and 60s when housewives would host “Tupperware parties” and sell the goods to their neighbours and family at home.
The scheme was later copied by a number of direct selling brands such as catalogue makeup company Avon.
However, in an age of convenience, consumers’ desire for an abundance of food storage has dwindled and Tupperware has struggled to engage with younger consumers.
As a result of this trend change, Neil Saunders, retail analyst and managing director at GlobalData Retail, told CNN, that Tupperware has “lost its edge”.
Saunders said the firm has witnessed a “sharp decline in the number of sellers, a consumer pull-back on home products, and a brand that still does not fully connect with younger consumers”.