By Miles Dilworth, Senior Reporter for Dailymail.Com
19:26 10 April 2023, update 20:03 10 April 2023
- The company said on Friday its future was in ‘substantial doubt’ and was reviewing layoffs
- Its shares fell nearly 50% on Monday and are down 90% year on year
- The brand struggles to compete with new rivals and attract young shoppers
The iconic Tupperware brand is facing extinction after shares fell nearly 50% on Monday over fears it will fail to attract young shoppers.
His disastrous performance follows a filing released by the company on Friday warning there was “substantial doubt” about his “ability to continue in business”.
The 77-year-old company has struggled in recent years as it struggled to shake up its stilted image in the face of new competition, while demand for home products plummeted.
Tupperware said it was working to find financing to stay in business, but it wouldn’t have enough cash to fund its operations if it didn’t.
It is looking at its workforce and real estate portfolio as cost-cutting options, he said.
CEO Miguel Fernandez said in a statement, “Tupperware has embarked on a journey to turn around our operations and today marks a critical milestone in managing our capital and liquidity position.
“The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional funding and redress our financial position.”
Tupperware is also fighting to avoid being delisted after the New York Stock Exchange issued a warning for failing to file an annual report.
Stocks have fallen 90% in the past year.
The Massachusetts company is struggling to attract young shoppers and persuade consumers that its products are sustainable.
The company includes more sustainable materials like glass and stainless steel in its product line and makes some products from used mixed plastic waste that would otherwise have ended up in landfills.
Fernandez also argued that Tupperware products help reduce food waste by allowing leftovers to be stored.
The company’s decades-long market dominance has been threatened by competition from other popular brands such as Rubbermaid, Glad, Pyrex and Oxo.
In 2021, it embarked on a major strategic shift by striking a deal with Target, a retailer popular with younger generations.
The company previously sold its products almost exclusively through “Tupperware parties” or through its own website.
Neil Saunders, retail analyst and managing director of GlobalData Retail, told CNN that a “sharp decline in seller numbers, consumer pushback on home products and a brand that still doesn’t connect fully to young consumers” were all issues that Tupperware faced.
He said the company was in a ‘precarious position’ as it struggled to increase sales and being ‘asset-light’ made it difficult for it to raise funds.
“The company was once a hotbed of innovation with kitchen gadgets to solve problems, but it’s really lost its edge,” he added.
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