The home products company faces $700 million in debt in the face of a historic liquidity crisis.
Tupperware is a company with nearly 80 years in the home products industry.
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tupperwarethe company leader in sales of household products worldwide, faces financial problems due to a debt of more than 700 million dollars. This lack of revenue is due to increased use of free takeout boxes from restaurants, rising food delivery orders, and competition from cheaper food storage containers such as gladwareof Clorox.
On the buying and selling website Amazon.comGladWare sells three-packs of 8-cup plastic containers with lids for $8.99, compared to a single Tupperware container at 10.99.
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Investors dumped shares of Tupperware Brands Corp. this week after they said they had “substantial doubts” about their ability to stay in business without a cash injection or debt relief, which they are struggling to repay due to rising interest rates. Shares hit their lowest in three years at $1.21 on Monday and rose to $1.32 at the close of trading on Wednesday. The company, which is headquartered in Orlandosaid it was looking at ways to “downsize” and monetize its fixed assets.
rivals of USA and the proliferation of “alternative private labels” have eroded Tupperware’s market share over the years, according to retail consultancy Carol Spiekerman. “The main problem with Tupperware is that there are so many more competing brands to choose from,” he said. Neil Saundersmanaging director of GlobalData.
Tupperware CEO, Miguel Fernandez, said the brand was working to expand e-commerce sales. Late last year, it began selling containers and other products at Target Corp.
Source: Ambito
