Tupperware Could Disappear for Good—Iconic Company Says It Can't Stay Afloat
The CEO says the food storage container brand is "on a journey to turn around our operations."
Whether you're planning out your meals for the week or simply just made too much food for your family meal, Tupperware has long come in handy as the go-to way to store your leftovers. The durable containers have become indispensable kitchen items, making it easy to cut down on food waste and save some money on your grocery budget. But despite how useful the products may be, the company that makes the namesake storage receptacles is in dire straits. And now, Tupperware says it could disappear for good amid financial woes. Read on to see why the iconic company says it can't stay afloat.
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Tupperware says it has "substantial doubt" it can stay in business.
While Tupperware may help keep your food fresh, the company's sales appear to be anything but. In a regulatory filing on April 7, the company laid out its dire financial situation and warned that there was "substantial doubt about the company's ability to continue as a going concern," USA Today reports.
The iconic kitchen supply brand said it was in danger of being delisted from the New York Stock Exchange for not filing its required annual report. In addition, the company admitted it was in a cash crunch, saying "currently forecasts that it may not have adequate liquidity in the near term." It's also mulling over corporate layoffs and selling parts of its real estate portfolio to help stay afloat, CNN reports.
The company says it's trying to secure more funding to help it survive.
The company's announcement comes after it reported an 18 percent decline in sales for 2022 last month, USA Today reports. But Tupperware said the figure would likely "differ significantly" when it made its annual report, hinting that the situation could be worse than first imagined. In a press release on April 7, the company explained it was seeking extra funding to help it stay afloat.
"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 Tupperware CEO Miguel Fernandez. "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."
Tupperware has struggled amid increased competition and a change in the market.
The company's latest woes mark a significant decline for the brand that has become synonymous with food storage. Founded in 1946, Tupperware first languished on department store shelves before the product skyrocketed in popularity thanks to home parties used to market and sell the containers, per the BBC. The word-of-mouth approach helped the company enter homes and establish itself as a kitchen staple.
But the iconic brand's name recognition has not translated into sustained sales. Instead, the company's troubles appear to stem from 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," Neil Saunders, retail analyst and managing director at GlobalData Retail, told CNN.
"The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge," he added.
The company has tried a few tactics to revitalize itself in recent years.
Despite its financial hardships, the company has still been making moves to revitalize the brand. In October of last year, Tupperware announced it had struck a deal with mega-retailer Target to carry its items and get in front of younger shoppers as part of its "turnaround" plan, the BBC reports. And the company has also begun to offer new products, adding items to its lineup such as a grill that can be used in a microwave oven.
"For more than 75 years, we've been the life of the party in homes around the world," Fernandez wrote in a LinkedIn post last October announcing the Target agreement. "We want to continue to have a seat at dining tables and a spot on kitchen counters for years to come. It's all about building a sustainable business that is as big as the loved and trusted Tupperware brand."
However, despite its recent maneuvering, Tupperware still must contend with other difficult immediate challenges. The company is facing a lawsuit brought forth by investors who say it didn't "disclose its serious issues with internal controls" and made misstatements in previous financial reports, per USA Today. Its stock has also dropped in value by 90 percent over the past year, CNN reports.