yperic
Greater Supremacy Member
- Joined
- Jan 14, 2003
- Messages
- 84,903
- Reaction score
- 31,971
Tupperware files for bankruptcy as its colourful containers lose relevance
Tupperware Brands and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday (Sep 17), giving in to dwindling demand for its once-iconic food storage containers and mounting financial losses.
The company's struggles resumed after a short-lived pandemic boost when increased home cooking briefly drove demand for its colourful, airtight plastic containers. A post-pandemic jump in costs of raw materials such as plastic resin, as well as labour and freight, further dented Tupperware margins.
"Over the last several years, the company's financial position has been severely impacted by the challenging macroeconomic environment," Tupperware's CEO Laurie Goldman said in a press release.
"As a result, we explored numerous strategic options and determined this is the best path forward. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders."
Tupperware has been planning to file for bankruptcy protection after breaching the terms of its debt and enlisting legal and financial advisers, Bloomberg reported on Monday.
The company listed US$500 million to US$1 billion in estimated assets and US$1 billion to US$10 billion in estimated liabilities, according to bankruptcy filings in the US Bankruptcy Court for the District of Delaware, which showed the number of creditors to be between 50,001 and 100,000.
Tupperware has been trying to turn its business around for about four years now after reporting a fall in sales for six consecutive quarters since the third quarter of 2021, as sticky inflation continued to dissuade its low and mid-income consumer base.
In 2023, the company finalised an agreement with its lenders to restructure its debt obligations and signed investment bank Moelis & Co to help explore strategic alternatives.
The company's roots date back to 1946, when chemist Earl Tupper "had a spark of inspiration while creating moulds at a plastics factory shortly after the Great Depression", according to Tupperware's website.
"If he could design an airtight seal for plastic storage containers, like those on a paint can, he could help war-weary families save money on costly food waste."
Over time, Tupper's hermetically sealed plastic containers also became associated with "Tupperware Parties," where friends would gather with food and drink as a company representative demonstrated the items.
Source: Agencies/nc
Tupperware Shares Fall Almost 50%, In Danger Of Going Out Of Business
Tupperware containers are a ubiquitous part of many Singaporean households.Most of us probably brought these iconic plastic containers to school with our packed lunches back in the day. If not, then we have all used — or, in this writer’s case, still use — one of the brand’s colourful water bottles.
Source: Estera on Unsplash
Unfortunately, the homeware brand is now saying that it might go out of business soon.
According to The Straits Times (ST), Tupperware’s shares plummeted nearly 50% on Monday (10 Apr).
The company, Tupperware Brands Corporation, has hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern”.
Tupperware may go out of business, has ‘substantial doubt’ it can go on
In a report by CNN Business, the American MNC also said in a regulatory filing that it has “substantial doubt” about the company’s ability to continue.ST notes that Tupperware was successful during the first two years of the Covid-19 pandemic.
With more people staying home, cooking and baking became favourite time-killers, leading to a boost in demand for kitchenware.
Source: Tupperware Brands Singapore on Facebook
During that period, the company’s share price jumped to US$37 (S$49).
However, ever since lockdowns have eased, Tupperware does not seem to be able to maintain that popularity.
In fact, its share price drastically dropped by nearly half its value earlier this week.
Last Thursday (6 Apr), Tupperware shares were valued at US$2.45 (S$3.30). On Monday, it fell to US$1.24 (S$1.65).
According to MarketWatch, the company’s stock plunged 98% in the last 12 months.
Struggling to keep up with the times
Founded in 1946 in Massachusetts, United States, Tupperware made its name with various kitchen storage and homeware products.It became so famous that people started to call any plastic food container “Tupperware”, regardless of the brand.
Despite that, the popularity of its products has struggled to keep up over the last 77 years.
Not only has demand for home appliances decreased since the end of lockdowns, but there are other cheaper and more appealing competitors vying for its market share.
Now, the brand might not be able to fund its operations if it does not secure more money soon.
To combat this, Tupperware is exploring potential layoffs and is reviewing its real estate portfolio, CNN reported. These are some cost-cutting measures that they hope will ease the situation.
Tupperware CEO Miguel Fernandez said in a press statement that they are doing everything they can to mitigate the impacts of recent events.
“We are taking immediate action to seek additional financing and address our financial position,” he said.
However, things are not exactly looking good for the homeware brand. Tupperware might have its stock de-listed, said CNN, for not filing a required annual report.
For the sake of nostalgia, we hope that Tupperware is able to turn the tides and remain present for more decades to come.
Featured image adapted from Tupperware Brands Singapore on Facebook.
Last edited:
