Tupperware says it could possibly go out of business due to being “less popular” with the younger generation.
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The company said in a statement that it has doubts that it can continue as a business along with “challenging” business economics. “Due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its Credit Facility, the Company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its Credit Agreement, it may not have adequate liquidity in the near term,” the company said in a press release.
Additionally, as reported by ABC News, Tupperware said they are discussing financing options with advisors. President and CEO Miguel Fernandez said the company plans to turn around its operations and is “doing everything to mitigate the impacts of recent events.”
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“Tupperware has embarked on a journey to turn around our operations, and today marks a critical step in addressing our capital and liquidity position. 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 is also facing competition from brands such as Pyrex, Rubbermaid, and Glad, as well as consumers wanting to use more sustainable food storage methods. “This lack of innovation and not knowing their core customer wants and needs is what’s ultimately going to lead to Tupperware’s demise,” said H Squared Research Chief Research Analyst Hitha Herzog.
“The company has many layers of issues ranging from how they sell their food storage products via direct sales force and branding issues where they have failed to relate to younger customers. But at the company’s core, the structure of its loans is shaky. The company has had to renegotiate the loan agreements three times since 2022. Higher interest rates along with falling sales and revenue is a recipe for financial disaster.”
The brand was founded in the 1940s by Earl Tupper and has since become a household name in the United States and worldwide. Tupperware products are known for their airtight seals, which help keep food fresh for longer periods, and their modular designs, which make it easy to stack and store containers of various sizes. In addition to food storage containers, Tupperware produces various other kitchen products, including utensils, cookware, and serving dishes. The brand has become synonymous with quality and durability, and many people swear by Tupperware products for their food storage needs.
Social media reacts to Tupperware possibly going out of business.
Twitter users were shocked as Tupperware has been a household staple for decades.
Was Tuperware STILL in business? I've not seen any in like 20 years.
— PDX Traffic Alerts (@TrafficPortland) April 12, 2023
Just read an article about how Tupperware may be going out of business. It made me quite sad. My entire life has been shaped by that ubiquitous plastic. I quite literally would not be where I am today without it.
— Willfully Misunderstood (@mrcraigharding) April 11, 2023
Tupperware going out of business means a lot of people will lose their source of income ☹️
— Don Luz. (@__mabone) April 12, 2023
Sad indeed…A valued client during their productive years. In better times, known for a strong global brand, unique corporate culture and progressive leadership.
— Fran Luisi (@FranLuisi) April 11, 2023