Tupperware warns it could go bust without emergency funding

Tupperware, the 77-year-old company famed for its airtight food containers, has warned it could go bust if it cannot raise emergency funds to stay afloat.

Shares in the US company, which became famous in the 1950s and 1960s when agents held “Tupperware parties” to sell the plastic containers to friends and families, crashed almost 50% this week after a warning to investors that there was “substantial doubt about the company’s ability to continue as a going concern”.

“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” said its chief executive, Miguel Fernandez. “The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position.”

The company, founded by chemist Earl Tupper in Massachusetts in 1946, has seen its shares drop by 95% over the past 12 months as it struggles to match more innovative storage competitors who promote their products to younger people on TikTok and Instagram.

Tupperware said it would not have enough cash to fund its operations if it was unable to secure additional funding in coming days. The company said it was considering making staff redundant and selling some of its real-estate portfolio to try to save money.

It said it “currently forecasts that it may not have adequate liquidity in the near term” and “has therefore concluded that there is substantial doubt about its ability to continue as a going concern”.

It is the second time in less than six months that Tupperware has issued a “going concern” warning.

The New York stock exchange also warned Tupperware was in danger of being delisted from the stock market as it is late filing its annual report. The company said it hoped to file a report within the next 30 days, but added “there can be no assurance” it “will be filed at such time”.

Neil Saunders, a retail analyst and managing director of GlobalData Retail, said Tupperware was suffering from a sharp decline in the number of sellers, a drop in consumers buying home products after the pandemic and “a brand that still does not fully connect with younger consumers”.

Tupperware products were initially sold in department stores, but sales were slow as consumers were unsure how to use the plastic containers. At the time, people were used to using glass or ceramic jars and were unfamiliar with using Tupperware’s patented “burping” seal to force out air.

Then a saleswoman called Brownie Wise, who was selling cleaning products at parties, added Tupperware into the mix and demonstrated how versatile the containers could be.

Tupper hired her as vice-president for marketing and she ran the Tupperware parties operations. At one point the company had more than 1 million representatives selling its products at parties and earning a commission on each sale.

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The Tupperware party phenomenon reached the UK in 1960 when the first event was held in Weybridge, Surrey. Popular initial products included the “Dip ‘N’ Serve” serving tray, the portable cake carrier the “Pie Taker” and the “Party Bowl”.

The Smithsonian magazine described how at Tupperware parties a “well-dressed dealer with practiced demonstration skills would show the hostess and her friends how to use this high-tech, colourful new kitchenware”.

“She’d lead the group in dramatic party games, like tossing a sealed Wonder Bowl full of grape juice around the room to demonstrate the strength of its seal. They sold products at retail prices, but Tupperware only took the wholesale price of an item.”

The last Tupperware party was held in the UK in 2003 when the company ended contracts with the 1,500 people selling its products here.