Tupperware company on brink of collapse, shares plunge 90%

A bombshell announcement has warned that a popular company that has been operating for 77 years is facing serious troubles.

There are fears that iconic brand Tupperware, which has been operating for 77 years, is on the brink of collapse.

Tupperware issued a bleak warning that its future is in jeopardy which saw its shares plunge by 50 per cent.

The company, which sells storage and food preparation products, gained a cult following in the 1950s when women hosted parties to sell their items.

But the company dropped a bombshell announcement in a US regulatory filling revealing there was “substantial doubt” about the company’s ability to continue and it had called in financial advisers to try to save the troubled brand.

Tupperware's chief executive officer Miguel Fernandez said the company was seeking potential investors or financing partners and that without extra funds it would not be able to run the business.

Tupperware stock closed down nearly 50 per cent after the company warned that it may go out of business. Picture: Scott Olson/Getty Images/AFP

The company was considering cost cutting measures too including slashing jobs and also reviewing its real estate portfolio.

“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” Mr Fernandez said in a statement.

“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.”

Meanwhile, the New York Stock Exchange warned that Tupperware’s stock is in danger of being delisted for not filing a required annual report.

Tupperware shares have plunged by 90 per cent since last year after it also raised concerns about the business’ ability to continue to operate back in November.

Some of Tupperware’s recent products; many consumers still associate the brand with the burnt-orange and mustard-yellow containers in their mothers’ and grandmothers’ kitchens. Picture: John Greim/Lightrocket/Getty Images

While it scored a deal with Target last year to stock its products in the US, the brand has been struggling to compete against rivals as well as gain a following with younger generations who have never heard of Tupperware parties.

GlobalData retail analyst and managing director Neil Saunders said Tupperware was in “precarious position” financially and blamed its woes on a “sharp decline in the number of sellers, a consumer pullback on home products” and its failure to connect with younger consumers.

“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge,” he told CNN.

A graphic from an early Tupperware advertisement but younger consumers are unaware of the brand. Picture: Pinterest

Overall, the retail sector has been hard hit by the economic downturn in recent times with a number of local outfits collapsing.

Australian clothes label Alice McCall went into liquidation in February shutting down its stores across Sydney, Melbourne and Brisbane.

Later, e-commerce brand EziBuy, which had an online presence across Australia and New Zealand, fell apart while iconic music and entertainment retailer Sanity shut down all 50 of its stores across Australia as the pandemic took a toll on the business.

Furniture seller Brosa also fell into liquidation after its restructuring attempt failed, leaving behind debts of $24 million, including $10 million to customers from unfulfilled orders.

Late last month, gourmet food start-up Colab, which offered ready-to-cook meals from more than 150 restaurants, went under after it failed to secure funding.

Beauty and wellness business BWX, which owns Zoe Foster Blake’s Go To skincare company, was also placed into administration after it reported a $100 million loss for the first half of the financial year.

Originally published as Tupperware company on brink of collapse, shares plunge 90%