Tupperware May Go Out Of Business As Shares Plummet To Almost Half Its Value

Tupperware Shares Fall Almost 50%, In Danger Of Going Out Of Business

Tupperware containers are a ubiquitous part of many Singaporean households.

Most of us probably brought these iconic plastic containers to school with our packed lunches back in the day. If not, then we have all used — or, in this writer’s case, still use — one of the brand’s colourful water bottles.

Unfortunately, the homeware brand is now saying that it might go out of business soon.

According to The Straits Times (ST), Tupperware’s shares plummeted nearly 50% on Monday (10 Apr).

The company, Tupperware Brands Corporation, has hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern”.

Tupperware may go out of business, has ‘substantial doubt’ it can go on

In a report by CNN Business, the American MNC also said in a regulatory filing that it has “substantial doubt” about the company’s ability to continue.

ST notes that Tupperware was successful during the first two years of the Covid-19 pandemic.

With more people staying home, cooking and baking became favourite time-killers, leading to a boost in demand for kitchenware.

During that period, the company’s share price jumped to US$37 (S$49).

However, ever since lockdowns have eased, Tupperware does not seem to be able to maintain that popularity.

In fact, its share price drastically dropped by nearly half its value earlier this week.

Last Thursday (6 Apr), Tupperware shares were valued at US$2.45 (S$3.30). On Monday, it fell to US$1.24 (S$1.65).

According to MarketWatch, the company’s stock plunged 98% in the last 12 months.

Struggling to keep up with the times

Founded in 1946 in Massachusetts, United States, Tupperware made its name with various kitchen storage and homeware products.

It became so famous that people started to call any plastic food container “Tupperware”, regardless of the brand.

Despite that, the popularity of its products has struggled to keep up over the last 77 years.

Not only has demand for home appliances decreased since the end of lockdowns, but there are other cheaper and more appealing competitors vying for its market share.

Now, the brand might not be able to fund its operations if it does not secure more money soon.

To combat this, Tupperware is exploring potential layoffs and is reviewing its real estate portfolio, CNN reported. These are some cost-cutting measures that they hope will ease the situation.

Tupperware CEO Miguel Fernandez said in a press statement that they are doing everything they can to mitigate the impacts of recent events.

“We are taking immediate action to seek additional financing and address our financial position,” he said.

However, things are not exactly looking good for the homeware brand. Tupperware might have its stock de-listed, said CNN, for not filing a required annual report.

For the sake of nostalgia, we hope that Tupperware is able to turn the tides and remain present for more decades to come.

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Featured image adapted from Tupperware Brands Singapore on Facebook.