Things are not looking good for the people’s trusted food storage containers company, Tupperware.
BBC reports that the 77-year-old company, founded by Earl Tupper in 1946, tried to appeal to a younger audience but failed. The company had recently started selling its products at America’s retail chain Target in an effort to entice the abovementioned audience as well as retailers worldwide. However, on Monday, the shares dropped to nearly 50% but slightly recovered on Tuesday by 5.6%.
According to BBC, Neil Saunders, the managing director of retail at the consultancy GlobalData, stated that selling directly to younger customers through the famous Tupperware parties “was not connecting.” These customers are also choosing to purchase products that are environmentally friendly.
The older customers who “remembered Tupperware in its heyday” have moved on. He added that customers can now buy more fashionable and cheaper storage containers online or in stores.
Neil notes that had the company made changes a decade ago (such as selling in shops or through wholesalers), it might have been in a different position.
In a statement provided by BBC, Tupperware said that it had “received a notice from the New York Stock Exchange… indicating the Company is not in compliance with Section 802.01E of the NYSE Listed Company Manual as a result of its failure to timely file its Annual Report…”
Furthermore, the statement notified the company that it has to renegotiate its loans after it had already been amended three times since August last year.
Tupperware stated that its Achilles heel was higher interest costs on its borrowings while attempting to turn the business around, reports BBC.
