Tupperware's Future Is in Question, Stock Plummets After Report

Even though Tupperware is a multi-level marketing (MLM) company that arguably started the trend, it's teetering on the edge of collapse, according to its latest regulatory filing. The brand that brought us the iconic food storage containers from in-home parties to even being sold on Amazon is in trouble.

The future of Tupperware appears to be questionable, as sales of the plastic containers have dwindled and failed to keep up with emerging trends in the industry. According to CNN, the company made a regulatory filing on Friday, April 7, 2023, indicating it was seeking investors or other means to stay operational.

Is Tupperware going out of business after 77 years? Here's what we know.

The Tupperware company was founded in 1946 by Earl Tupper, who patented the famous seal on his plastic food-storage containers. However, the credit for conceptualizing and developing the home-party concept that made Tupperware a hit was Brownie Wise. She believed women would purchase the products from their friends in a comfortable, at-home setting, which would also enable representatives to earn an income.

The MLM business model, also sometimes called network marketing, has come under fire for serious issues, including false promises of income potential, targeting vulnerable women to become sales reps, and the very low percentage of representatives who make decent income.

Though not technically considered a pyramid scheme, MLMs like Tupperware are known to reward the highest sellers and recruiters the most, while many more sales consultants make nearly no money. Tupperware figures from 2018 indicated that 94 percent of distributors were on the bottom of the "pyramid" earning only an annual gross average of $653.

Tupperware has attempted to revamp its strategies over time, but has struggled in a more crowded market. One problem Tupperware has faced is its reputation. Although the brand's longevity is a positive, many consumers today see it as old-fashioned or associate it with their grandmothers.

The emergence of hundreds of other MLM companies and exposure of the manipulative nature of that industry has also likely harmed Tupperware, which still relied largely on its home-party sales model. According to Neil Saunders (via CNN), Tupperware faced 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.”

Saunders wasn't very optimistic about the company's potential to raise money. “The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge.”

The company has attempted to fight declining sales with the release of new, trendier products and designs in order to attract younger customers. It made a deal with Target to sell Tupperware in its stores, and customers can also purchase Tupperware on Amazon. The Target partnership is part of the brand's aim to get in front of customers who haven't heard of Tupperware.

Tupperware 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.” Possible actions include layoffs and selling off portions of its real estate portfolio.

It certainly looks like a possibility. Tupperware's filing on April 7 said that it was working to secure financing, which it needs in order to be able to stay afloat. There's “substantial doubt about the company’s ability to continue as a going concern,” according to CBS News.

Tupperware stock dropped by about 50 percent following the regulatory filing on April 7. By April 11, according to CBS News, the stock was down by over 70 percent since the beginning of 2023. It's also in danger of being delisted from the NYSE because it was late in filing a required report.