Iconic Tupperware warns it could go out of business

[SGMCF328]

I believe most of us have owned or used at least a Tupperware product at some point of time (I have multiple containers and water bottles), so I am quite surprised and sadden (probably for nostalgic reason) to read this news.

Moral of the story: Just like Nokia and Sony Ericsson, no matter how good are your products, if you rest on your laurel or stay stagnant while your competitors keep improving, you are going to lose out one day.

Source: https://www.straitstimes.com/business/iconic-tupperware-warns-it-could-go-out-of-business

NEW YORK – Kitchenware staple Tupperware is teetering on the brink of collapse, with its shares plunging nearly 50 per cent on Monday, the largest drop on record, to notch an all-time low.

Investors were spooked after the company, Tupperware Brands Corporation, said last Friday that it had hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern”.

Tupperware experienced a sizzling run-up during the first two years of the Covid-19 pandemic, with its share price soaring to US$37 as the lockdown boosted kitchenware sales. It has fallen on harder times since then, with the company blaming cash constraints caused by higher interest costs. On Monday, the stock closed at US$1.22 after diving 49.6 per cent.

Founded in 1946, Tupperware and its signature containers created the modern food storage business. It distributes its products in nearly 70 countries, mainly through independent representatives around the world.

But the 77-year-old brand has struggled to shake its staid image and attract younger shoppers in the face of new competition, while demand for home products has fallen. 

Last month, the company reported a loss from continuing operations of US$28.4 million (S$37.8 million) for 2022, although this narrowed from US$152.2 million in the previous year. Net sales last year fell 18 per cent to US$1.31 billion. 

Tupperware chief executive officer Miguel Fernandez said the company was seeking potential investors or financing partners to stay in business, and that it would not have enough cash to fund operations if it failed to do so.

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

It is also working with Moelis & Company and Kirkland & Ellis to explore options for its nearly US$700 million (S$931.6 million) in long-term debt.

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 sunk about 84 per cent since November last year when the company first raised concerns about its ability to continue operating.

[Jman888]

are they using the MLM business model? you dun see them in supermarket or shops. how to reach to bigger target customers? 

[Volvobrick]

On 4/11/2023 at 5:41 PM, Jman888 said:

are they using the MLM business model? you dun see them in supermarket or shops. how to reach to bigger target customers? 

Any container any shape any size is just a click on the phone away. Who needs MLM? The MLM members run out of friends and relatives to sell to....

[Ct3833]

They sell at premium price , but when come to damage exchange is so difficult, while i like some of their products, i have stopped buying from them. 

[Fitvip]

I used to hear Tupperware Parties so frequently during my younger days. Sales is done thru such parties.

I really don't know how they can survive for so long as they still honour one to one exchange for their wares purchased donkey years ago!

[Tianmo]

Sad man, my kitchen is full of tupperware, and I love them. 

[13177]

On 4/11/2023 at 5:41 PM, Jman888 said:

are they using the MLM business model? you dun see them in supermarket or shops. how to reach to bigger target customers? 

I only see them as popup stall in malls. Think there is only one physical shop open which i believe not many people know.

I use their products, so if really close shop and no more then i will be quite sad. 

[13177]

On 4/11/2023 at 5:52 PM, Fitvip said:

I used to hear Tupperware Parties so frequently during my younger days. Sales is done thru such parties.

I really don't know how they can survive for so long as they still honour one to one exchange for their wares purchased donkey years ago!

One to one exchange is only for bottle cap and lid right? Not the whole thing can exchange.

[13177]

On 4/11/2023 at 5:47 PM, Ct3833 said:

They sell at premium price , but when come to damage exchange is so difficult, while i like some of their products, i have stopped buying from them. 

I used to go JB to buy tupperware, the price in JB is cheap. Tupperware in sg is ex lo.

[Tianmo]

On 4/11/2023 at 5:41 PM, Jman888 said:

are they using the MLM business model? you dun see them in supermarket or shops. how to reach to bigger target customers? 

I think at one point, or maybe now still, they have push carts located at quite a number of shopping centers. But I agree they are not very aggressive anymore. 

[Tianmo]

On 4/11/2023 at 5:47 PM, Ct3833 said:

They sell at premium price , but when come to damage exchange is so difficult, while i like some of their products, i have stopped buying from them. 

exchange actually quite easy. Last time I passed them to my friend who sold the wares to me, but long time never buy from her so I went to their head office cum showroom at tai seng to change, no question asked, just take q number and the counter will change for you. One of my cover was discontinued, and they dont have it anymore, but they offered  me a new container of the same price instead. 

[Fitvip]

On 4/11/2023 at 6:15 PM, 13177 said:

One to one exchange is only for bottle cap and lid right? Not the whole thing can exchange.

My wife got the whole container changed, to a different model.

Edited April 11, 2023 by Fitvip

[Tianmo]

On 4/11/2023 at 6:14 PM, 13177 said:

I only see them as popup stall in malls. Think there is only one physical shop open which i believe not many people know.

I use their products, so if really close shop and no more then i will be quite sad. 

yah, quite a big showroom at tai seng. 

[Tianmo]

On 4/11/2023 at 6:15 PM, 13177 said:

One to one exchange is only for bottle cap and lid right? Not the whole thing can exchange.

usually is the cap or lid that breaks, the whole thing how to spoil unless you burn it, it is stated as microwave safe even. 

[Kxbc]

My oldest tupperware is only 20 years old. I know it's prob younger than your dino tupperware. 😁

None of them ever broke or cracked. Super durable and still air tight after all these years. 

So far, no other brand has come close.

[Estrangable]

good to see them out of business.. bloody MLM business model. Same for that shitty herbal life shit. God, i hate dickheads who just ping you out of the blue after a few years and pretending to show some concerns, then throw you their MLM BS. same goes for insurance agents 

[13177]

On 4/11/2023 at 6:24 PM, Fitvip said:

My wife got the whole thing changed, to a different model.

The whole thing damaged? Actually Tupperware quite durable, not easy to break. 

[Fitvip]

On 4/11/2023 at 6:47 PM, 13177 said:

The whole thing damaged? Actually Tupperware quite durable, not easy to break. 

Not damaged. It was too old and the lid a bit loose.