If there is one thing that mothers across the globe can relate to, it’s their habit of collecting Tupperware containers. Coming in a myriad of different shapes and colours, they are a constant feature in households across the world since the company’s inception in 1946 by founder Earl Tupper.
Based out of America, the brand quickly became a cultural phenomenon in its own right, especially through their network of independent dealers typically consisting of housewives setting-up Tupperware parties, which have remained as a cornerstone of their business model.
Tupperware may go out of business
However over the years, the popularity of their rainbow-coloured plastic containers, which have been a feature in many cabinets and potluck parties, appears to have waned considerably. So much so in fact that according to German news agency dpa, Tupperware is now facing dire financial straits and may be at risk of folding completely as it experiences acute cash shortages.
As reported by Free Malaysia Today, company representatives said that it has hired ‘financial advisors to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern’, raising worries over its foreseeable future. Consequently this has led their share values to drop by a shocking 49% to a three-year low of US$1.24 (RM5.47), after investors were left spooked.
“The company is doing everything in its power to mitigate the impacts of recent events,” said Tupperware boss Miguel Fernandez in a statement.
Company in decline after uptick of sales in 2020
This was in sharp contrast to the uptick in business that they witnessed during the height of the Covid-19 period, with international lockdowns drumming up demand for their products.
At this point in time, business news site Bloomberg says that Tupperware is working with Moelis & Co. and Kirkland & Ellis to explore avenues that they can use to service their $700 million long-term debt. It is also taking actions to improve its liquidity position through discussions with potential investors or financing partners, and hope to turn to its own real estate portfolio to acquire more cash on hand.
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