Famed for ‘house parties’ to sell food boxes, Tupperware warns of collapse sans fresh funds

There are many reasons for the company not faring well – disinterest from youth, not as inventive or stylish or cheap like other brands.

Tupperware logo | Wikimedia Commons

New Delhi: Business is no longer a “house party” for US food storage container maker Tupperware.

The company, which became well-known in the 1950s and 1960s, has warned it could go bust unless it raised new financing.

The reasons are many – an unsuccessful attempt to reposition itself to a younger audience, not being as inventive and stylish like other brands and its water-tight polyethylene products are no longer considered environmentally friendly by today’s buyers.

Not to mention its still-prevalent direct-selling strategy – which made the “Tupperware parties” legendary in its heydays – is not enticing consumers.

Sixty to 70 years ago, Tupperware made homemakers throw parties to directly sell the storage containers to their friends and their friends. The sellers got a commission from the company.

Neil Saunders, managing director of retail at the consultancy GlobalData, told BBC that Tupperware has “failed to change with the times in terms of its products and distribution”.

Now the idea of selling through parties is not connecting with younger customers, while the older ones have moved on. Not to mention, cheaper and more fashionable containers are available online.

Saunders also said Tupperware could have been in a different position if it had switched to selling in shops or through wholesale even 10 years ago.

In a statement last week, Tupperware said its shares could get delisted from the New York Stock Exchange because the company had not yet filed its annual report.

It said it had already amended its loan agreements thrice since August 2022 and may still have to renegotiate its loans.

The company is struggling with higher interest costs on its borrowings while it attempts to turn the business around, the statement read.

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