Iconic Tupperware warns it could face bankruptcy after 77 years after failing to attract younger consumers – and its shares fall 90% in a year
- Firm said on Friday his future was in “substantial doubt” and was investigating layoffs
- Shares fell nearly 50% on Monday and are down 90% in a year
- Brand struggles to compete with new rivals and attract younger customers
Iconic brand Tupperware is facing extinction after shares fell nearly 50 percent on Monday amid concerns it’s failing to attract younger customers.
The poor performance follows a filing filed Friday by the company that warned there was “substantial doubt” about its “ability to continue as a going concern.”
The 77-year-old company has struggled in recent years to shake its stable image in the face of new competition, while demand for home products has plummeted.
Tupperware said it was in the process of finding funding to stay in business, but would not have enough money to fund operations if it failed.
It is reviewing its workforce and real estate portfolio as cost-cutting options, it said.
CEO Miguel Fernandez said in a statement: “Tupperware has embarked on a journey to turn around our business and today marks a critical step in addressing our capital and liquidity position.
Tupperware CEO Miguel Fernandez said the company has “started a journey to change our business”
The iconic brand sees its market dominance threatened by competition from other popular brands, including Rubbermaid, Glad, Pyrex and Oxo
The company has struggled to attract younger customers and its shares are down 90% in the past year
Tupperware products were traditionally sold exclusively at ‘Tupperware parties’ that became popular in the 1950s
The parties were organized by the company itself, but it is now expanding and recently struck a deal to stock its products at popular retailer Target
“The company is making every effort to mitigate the impact of recent events and we are taking immediate action to seek additional funding and address our financial position.”
Tupperware is also struggling to avoid being delisted after the New York Stock Exchange issued a warning for failing to file an annual report.
Shares are down 90 percent in the past year.
The Massachusetts company is struggling to attract younger customers and convince consumers that their products are sustainable.
The company includes more sustainable materials such as glass and stainless steel in its range and makes some products from used mixed plastic waste that would otherwise end up in landfills.
Fernandez has also argued that Tupperware products help reduce food waste by providing storage for leftovers.
The company’s decades-long market dominance is threatened by competition from other popular brands, including Rubbermaid, Glad, Pyrex and Oxo.
In 2021, it embarked on a major strategic shift by closing a deal with Target, a retailer popular with younger generations.
The company used to sell its products almost exclusively through ‘Tupperware parties’ or through its own website.
Neil Saunders, retail analyst and managing director at GlobalData Retail, said CNN that a “sharp decline in the number of sellers, a consumer pullback from home products, and a brand that still doesn’t fully connect with younger consumers” were all problems Tupperware faced.
He said the company is in a “precarious position” as it struggles to grow sales and being “asset-light” means it is difficult to raise money.
“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it’s really lost its edge,” he added.