Status: 04/11/2023 1:55 p.m
Plastic packaging in all imaginable shapes and colors – that’s what Tupperware has stood for for decades. But the US group is struggling with massive problems and urgently needs fresh capital. Otherwise there could even be a risk of bankruptcy.
The US company Tupperware is suffering from acute financial difficulties, as the company announced yesterday in the United States. In addition, there are apparently problems with the annual accounts for the past year. The stock lost around half of its value in trading on US stock exchanges yesterday after the company commented on its financial situation. At $1.20, the price slipped to its lowest level since the record low reached at the beginning of the Corona crisis.
The head of the company is looking for investors
According to the company, the continuation of business operations is uncertain due to liquidity shortages. Consultants have already been hired and talks started with potential investors to find ways out of the current situation. “The company is doing everything in its power,” said Tupperware CEO Miguel Fernandez.
Tupperware, which was founded by Earl Tupper in 1938, once revolutionized the household world with its bowls and boxes, some of which are considered design classics. The distribution system, which was mainly based on direct sales with sales parties, was once an innovation. The company has been on the German market since 1962.
Sales declines could not be stopped
The problems with the sale of Tupper products had already been indicated in recent years. By the turn of the millennium, revenue from classic plastic containers had fallen by more than a quarter. After that, Tupperware tried to expand the product range with acquisitions, for example to include cosmetic products. The company was simultaneously renamed Tupperware Brands Corporation in late 2005.
However, even in the recent past, the sales and profit contributions of the new business areas have apparently not been able to stop the shrinking process. In the final quarter of 2022, sales fell by a further 20 percent to $313.7 million compared to the same period last year. All in all, Tupperware made a loss of $35.7 million.
Annual accounts late
The financial situation is now also threatening because Tupperware did not manage to submit the annual report on time. This could lead to the breach of credit agreements.
According to experts such as Neil Saunders from the analysis company GlobalData Retail, Tupperware has not been able to successfully establish itself among younger customers with its product range. Now the company also has few opportunities to get fresh funds, Saunders told US television broadcaster CNN.