Is Tupperware another company facing financial peril, just like JCPenney or Party City? Is Tupperware going out of business in 2023? These questions might surprise you as once a synonym for kitchen storage now has doubts about surviving in the market.
Yes! We are really talking about the company that gave a new definition to women’s roles in the kitchen and the country’s economy.
Tupperware has seen a lot while running the business for 77 years. It has been a favorite of all households, but the current times are tough for the company.
Let’s understand how and why Tupperware is struggling and is it really that Tupperware is going out of business in 2023.
Tupperware was born in 1942. It was founded by Earl Tupper, who stumbled upon a plastic manufacturing company in Leominster, Massachusetts, during the Great Depression.
It took some experiments for Tupper to make the first set of Tupperware from polyethylene.
Polyethylene was a popular component of radar equipment during the war and was being manufactured by a chemical company named Dupont.
The first-ever product of Tupperware ‘Super Bowl’ was a bell-shaped container and was introduced to the public in 1946.
During the early 1950s, Tupperware products gained popularity, which also increased sales.
Fast forward to 2007, Tupperware sold approximately 1.9 million direct salespeople on contract. In 2013, Indonesia became the top-selling market of Tupperware products, leaving Germany behind.
According to the reports, the sale in Indonesia in 2013 was more than $200 million.
Tupperware soon became a household name in the country. It created a revolution in food storage as a result, its plasticware is also kept in the museum.
What Were Tupperware Parties?
The sales were considerably low when Tupper started to sell his kitchenware in department stores in Manhattan.
Meanwhile, a woman named Brownie Wise in Florida was selling Tupperware products at patio parties.
Her target audience was the stay-at-home woman, and she used the strategy of demonstrating the benefits of the Tupperware products over the ceramics.
Wise also recruited some of the women to host similar kinds of parties from their end, which helped Tupperware reach new customers.
Soon, Tupper himself heard about the success of Brownie Wise and hired her as the Marketing President of the company.
After the appointment, Earl Tupper remained focused on the manufacturing part of the company, while Brownie Wise focused on building Tupperware’s dealer network and most public-facing parts of the company.
Is Tupperware Going Out Of Business 2023?
Recently, Tupperware announced its substantial doubts about whether it can remain afloat in the market amid its slumped sales.
In a news release, the company stated that it might not have enough cash to survive in the near future if it isn’t able to get enough credit.
However, just four months after it announced this news, the company reached a deal with its creditors to reduce its interest payment obligations by $150 million. The creditors also extended the deadline for the company to pay back the remaining $348 million in debt.
It also secured a borrowing capacity of $21 million.
This indicated that it is skeptical to say whether Tupperware is going out of business or not as it is still struggling to keep its operation afloat. But as of now Tupperware is not going out of business.
Why Is Tupperware Going Out Of Business?
Many companies saw a shutdown during the pandemic and due to the pandemic, but this was not the case with Tupperware.
The pandemic breathed a new life into Tupperware as the sales of the company started to rise with more and more people staying at home.
Prior to the pandemic, Tupperware was struggling with negative sales for three consecutive years. But as the pandemic started, the sales of the company surged to nearly $500 million in the fourth quarter of 2020.
However, this didn’t last for long, as after the pandemic was over, a decrease in sales from $500 million to $300 million was reported in the recent fourth quarter of the company.
Net sales were down 18% year over year to $1.3 billion.
Moreover, the large competition in the market also contributed to the plummeted sales of the company. Tupperware has a high price point compared to its alternatives.
The 77-year-old company is not that popular among youngsters as youngsters aren’t able to connect with the company. This is another reason for the downfall of Tupperware.
What Is The Financial Position Of Tupperware?
Below is the financial statement of the company indicating the financial condition of Tupperware:
Balance Sheet Of Tupperware
|Dec 22||Sep 22||Jun 22||Mar 22||Dec 21|
|Cash, Cash Equivalents and Short-Term Investments||$110.10M||$102.90M||$118.80M||$ 245.60M||$267.20M|
|Total Assets||$ 952.20M||$1.05B||$1.11B||$ 1.24B||$1.26B|
Income Statement Of Tupperware
|Dec 22||Sep 22||Jun 22||Mar 22||Dec 21|
|Net Income Common Stockholders||$-35.70M||$ 6.80M||$1.20M||$-100.00K||$23.80M|
Cash Flow Statement Of Tupperware
|Dec 22||Sep 22||Jun 22||Dec 21||Dec 21|
|Free Cash Flow||$ 10.30M||–||$ -27.20M||$ -47.30M||$ 97.80M|
|Operating Cash Flow||$ 17.40M||–||$ -17.60M||$ -41.30M||$ 107.80M|
|Investing Cash Flow||$ -14.30M||–||$ -8.90M||$ -5.50M||$ 29.20M|
|Financing Cash Flow||$ -6.20M||–||$ -102.10M||$ 28.90M||$ 18.20M|
What Is The Net Worth Of Tupperware?
Tupperware is a subsidiary of Tupperware Brands. The company’s net worth or market capital is $89.71 million, which decreased by -71.63% in one year.
Here is a list of the net worth of Tupperware over the years:
|Date||Market Cap||% Change|
So, Is Tupperware going out of business 2023?
The answer to this question is a bit complicated as, despite its deal with the creditors for reducing the debt amount, Tupperware is still struggling to stay afloat.
The company recently entered meme stock territory, which resulted in an increase in the shares of the company by 541% between July 21 and July 31.
According to Neil Saunders, the managing director of the analytics company GlobalData, Tupperware has bought itself a breathing space by entering into various agreements regarding its debt.
However, this has not solved all the long-term issues of the company, and it is not out of the woods yet. He further added.
Are Tupperware products still sold?
Yes, Tupperware products are still being sold. It made a long-term deal to sell on store shelves in the U.S., partnering with Target. You can also find the vintage-inspired bowls and pitchers on Amazon.
Who is the CEO of Tupperware?
As the company went through a transformation plan, the company named Laurie Ann Goldman as the CEO of Tupperware.
Is Tupperware in financial trouble?
Tupperware was on the verge of bankruptcy in April. But recently, it entered into new agreements with the creditors to reduce the debt amount and also receive new financing, which gave a second life to the company.