- Iconic Tupperware parties in suburban homes captured the popular imagination
- In an SEC filing, Tupperware Brands warned that it was having problems with its accounts
- The company doubted whether it could finance itself for another year
Tupperware has indicated that its business may not survive due to declining demand for its plastic containers and mounting debt.
In a Filing with the U.S. Securities and Exchange Commission On Friday, the company said it was in “challenging financial condition” and would miss the deadline for filing a 2023 annual report.
The 77-year-old company said it probably doesn’t have enough cash to last another year.
Founded in 1946 by chemist Earl Tupper, Tupperware became famous for its airtight food storage containers made from polyethylene.
The products became extremely popular in the 1950s, thanks in part to the iconic “Tupperware parties,” where a salesperson would visit someone’s home to demonstrate and sell the containers.
Tupperware Brands indicated Friday that its company may not survive an SEC filing
A group of unnamed women attend a Tupperware party circa 1955, some wearing hats made from Tupperware products
Iconic Tupperware parties have captured the popular imagination ever since.
For example, Dixie Longate is a drag queen persona known as “Tupperware Lady.” She is played by actor Kris Andersson and is known for her comedy sketches in which she sells the plastic goods.
The COVID-19 pandemic boosted Tupperware sales as families stayed indoors and cooked more meals at home.
Since then, the company has suffered from poor sales and mounting debt, sending its share price to its lowest level ever.
The SEC filing said: “The Company’s accounting department has experienced and continues to experience significant turnover, which has resulted in resource and skills shortages, resource strains and a loss of continuity of knowledge.”
It traded at $1.34 on Friday, down from a high of nearly $100 in 2013.
The company first expressed substantial doubts about its ability to continue as a going concern almost a year ago.
Dixie Longate, also known as the Tupperware Lady, performs in Westwood, California
Shares of Tupperware Brands traded at $1.34 on Friday, down from a high of nearly $100 in 2013
It has since appointed consumer goods industry veteran Laurie Ann Goldman as CEO.
After the company discovered errors in its financial reporting from previous periods, it hired investment bank Moelis & Co to explore strategic alternatives and entered into an agreement to restructure its debt.
It plans to complete the necessary processes and submit its 2023 10K “as soon as possible,” but added that “no assurance can be given regarding the timing of filing completion.”
Earlier this year, Tupperware had to retain KPMG as its new independent auditor after the former auditor rejected his reappointment.
