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“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in
addressing our capital and liquidity position,” CEO Miguel Fernandez said in a press release. “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 77-year-old business has been struggling in recent years to maintain its relevance against rivals. It has
been trying to shed its staid image and attract younger customers with newer and trendier products. It also
struck a deal with Target last year to sell its products.
Several issues are hurting Tupperware, including a “sharp decline in the number of sellers, a consumer
pullback on home products, and a brand that still does not fully connect with younger consumers,”
according to Neil Saunders, retail analyst and managing director at GlobalData Retail.
Saunders said Tupperware is in a “precarious position” financially because it’s struggling to grow sales, and
because it’s asset-light it doesn’t have “much capacity to raise money.”
“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really
lost its edge,” he said. Tupperware (TUP) said the entry into Target is part of the brand’s reinvention, which
includes plans to grow the business through multiple retail channels and get its products in front of younger
consumers who’ve never even heard of Tupperware (TUP) parties. But that has failed to work so far: Shares
are down 90% over the past year. It also issued another “going concern” warning last November.
Link: https://edition.cnn.com/2023/04/10/investing/tupperware-trouble/index.html