Shares of Tupperware fell almost 50 percent on Monday following the company鈥檚 that it might go out of business. In a statement published on Friday, the maker of food container products warned that there is 鈥渟ubstantial doubt about its ability to continue as a going concern,鈥 unless it somehow manages to raise enough capital to stay afloat. The company鈥檚 management, together with financial advisors, is looking at potential investors, real estate sales as well as downsizing and cost-saving measures to preserve and generate liquidity. "Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position," Miguel Fernandez, President and Chief Executive Officer of Tupperware Brands said in the statement.
Founded in 1946, Tupperware revolutionized the way people store and preserve food. The company鈥檚 airtight, durable containers made from plastic quickly became a staple in households around the world. What truly sets Tupperware apart from its competitors is its unique business model, however. Tupperware operates as a direct selling company using a multi-level marketing strategy under which independent consultants sell products directly to consumers through in-home demonstrations, widely known as 鈥淭upperware parties鈥.
Historically, this model has allowed Tupperware to cut out the middleman, preserve its margin and maintain a closer relationship with its customers, all while empowering individuals to start their own businesses and earn income on their own terms. In recent years, the party has come to end, however, as the brand has struggled to connect with young consumers, losing sellers AND buyers as a consequence. Global sales of Tupperware have declined by more than 50 percent since peaking at $2.67 billion in 2013. According to preliminary results, the company lost $14 million on sales of $1.31 billion in 2022.
