Once Iconic, Tupperware on the Verge of Collapse Amid Consumer Pullback and Lawsuits
The Fall of an American Icon, Tupperware Faces Uncertain Future as Shares Plunge by 50%
11 April 2023
To avoid going out of business, Tupperware is looking for possible investors or finance partners.
The business has had trouble competing with rivals and attracting younger customers.
Shares of Tupperware have fallen 90% since last year, and the company now risks being delisted from the New York Stock Exchange for failing to submit the necessary annual report.
The 77-year-old popular storage and food preparation equipment firm Tupperware is at risk of going out of business. Shares of the firm fell by 50% after it warned that its future was in peril. Miguel Fernandez, the CEO, indicated that Tupperware was looking for possible investors or financial partners and that it would not be able to operate the firm without additional capital.
The business was exploring employment cuts and a review of its real estate holdings as cost-cutting measures. The New York Stock Exchange may delist Tupperware's shares because it failed to submit the necessary annual report. As women held parties to market their products in the 1950s, Tupperware developed a cult following. The business has struggled to outperform competitors and win over new generations who have never heard of Tupperware parties. Retail researcher and managing director Neil Saunders of GlobalData says
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Due to a rapid fall in the number of sellers, a consumer backlash against home goods, and its inability to engage younger customers, Tupperware is in a vulnerable financial situation. Many local businesses have collapsed as a result of the economic slump, including Australian clothing designer Alice McCall, e-commerce company EziBuy, venerable music and entertainment outlet Sanity, and furniture vendor Brosa, in addition to Tupperware.
Tupperware is an American brand of kitchen and household goods that includes items for preparing, storing, and serving food. Earl Tupper founded the business in Leominster, Massachusetts, in 1946. Nowadays, approximately 100 nations sell it. Since last year, when it also raised doubts about the company's capacity to survive, shares of Tupperware have dropped 90%.
Despite last year's agreement with Target to carry its products in the US, the firm has struggled to outperform competitors and win over newer generations who have never heard of Tupperware parties. Investors of Tupperware are suing the corporation, claiming that it withheld material information from them in its financial reports. It has issued a warning that since it filed the required annual report late, it risked being delisted from the New York Stock Exchange.