Tupperware, the famous American manufacturer of plastic food containers, has been facing deep financial difficulties for several years. On Tuesday, its shares were suspended from trading on the New York Stock Exchange, after a drastic fall of 57.51% the previous day.
The drop comes after Bloomberg reported that the Orlando, Florida-based company could file for bankruptcy as early as this week. Tupperware has yet to respond to clarify the situation, and the New York Stock Exchange has not provided details on the exact reasons for the trading suspension.
Liquidity problem
The company has been facing liquidity issues for some time. In mid-August, it had already mentioned these major difficulties, as well as doubts about its ability to continue its activities. In addition to these liquidity problems, Tupperware is also weighed down by debt of several hundred million dollars, which it had partially restructured in 2020.
To avoid default, the company had reached arrangements with some creditors, but this was not enough to improve the group’s financial situation. In addition, Tupperware has not published its financial results since 2022, when its turnover amounted to $1.3 billion, a drop of 42% compared to five years earlier.
A historic company in the United States
Founded in 1946 by Earl Tupper, Tupperware had become a cultural phenomenon with its airtight plastic food storage containers. In the early days, the company struggled to sell its products in stores. It pioneered the concept of “Tupperware parties,” where demonstrations were held in sales representatives’ homes, allowing groups of consumers to learn about and purchase products in a social and private setting.
However, Tupperware has seen its model challenged by changing consumer habits. The rise of online commerce, meal delivery and the increasing use of single-use plastics have contributed to weakening the company. Although Tupperware has tried to adapt by expanding its online sales and entering into distribution agreements with major retail chains, this has not been enough to reverse the negative trend.