Founded in 1946 by Earl Tupper, the company revolutionized the kitchenware market thanks above all to the famous “wonder bowls”. CEO Miguel Fernandez assured that the company is taking “immediate steps to seek additional funding”
Tupperware, the historic US company of airtight food containers, is in a liquidity crisis. The company is in fact looking for fresh capital to survive. In the meantime, however, on April 10, the title on Wall Street lost almost 50% while yesterday it rebounded by 14%, however leaving heavy shadows on operations. According to reports from Bloomberg, the company owes nearly $700 million in debt. The company’s management has engaged financial advisors “to help improve the capital structure” and clear the field of doubts about actual business continuity. The company is looking for potential investors or financial partners and is considering putting its real estate assets to raise liquidity.
The Tupperware Crisis
Founded in 1946 by Earl Tupper, the company has revolutionized the market of kitchen items thanks above all to its airtight containers, among which there are the famous “wonder bowls”, plastic jars that can be closed and opened with extreme ease thanks to the uncork system, an idea that has been taken up over the years by many companies. The company has founded its success by focusing on customer loyalty with the formula of meetings at home with friends. In fact, in the 50s and 60s it launched the fashion of plastic containers sold at home by women who gathered friends and acquaintances at home to promote the products during the “Tupperware party”. A “home” system that is difficult to re-propose in the e-commerce era. The corporate crisis would have arisen from the decline of sellers, the collapse of retail linked to the Covid pandemic and a certain lack of grip among young people. In fact, plastic does not fascinate the new generations. In recent years there has therefore been a drop in turnover and an increase in debts. Not even the agreement with the Target large-scale distribution network managed to improve the fortunes of the company which in the last part of 2022 suffered a 20% drop in sales.
CEO Fernandez: “We are taking immediate steps to seek additional funding”
CEO Miguel Fernandez assured that Tupperware “has embarked on a path” to revolutionize the company’s business and heal its capital and liquidity position. “The company is doing everything in its power to mitigate the impacts of recent events – said the CEO -. We are taking immediate steps to seek additional funding and address our financial position”.
Source-tg24.sky.it