The Tupperware company, known for its food storage containers and all kinds of household helpers, has filed an application in Austria to open restructuring proceedings without self-administration at the Vienna Commercial Court. This is what the creditor protectors KSV 1870, AKV and Creditreform report. 16 employees are affected: the liabilities amount to 11.1 million euros, the assets to around 487,00 euros. The company is planned to continue; creditors are offered a quota of 20 percent.
The reason given for the bankruptcy is the insolvency of the US parent (we have reported).
Problems have been around for a long time: the company had to issue a warning in spring 2023 that invoices might soon no longer be able to be paid. “We are doing everything in our power,” said CEO Miguel Fernandez at the time. He has now been replaced.
Many cheaper alternatives
The reasons for the bankruptcy are varied: On the one hand, many people, especially younger people, no longer know the brand. On the other hand, there are numerous alternatives: There are many food storage containers on offer, the quality is often no worse, Tupperware but more expensive in comparison. The idea of sustainability also plays a role: many consumers prefer tableware made of glass or stainless steel to plastic. In addition, the company focused for a long time on a sales strategy, direct sales via “Tupper parties”. It has only been sold online since 2018; in the USA it is sold via the Target supermarket chain and in Austria via Interspar. However, this opening may not have brought the desired sales success either. According to Bloomberg, Tupperware still works with more than 300,000 independent sellers, although it now has stores and online distribution. Tupperware is represented in 100 countries worldwide, in Austria since 1965.
Share price collapsed by 94 percent
The effort to overcome the challenges in the kitchen by offering an ever-larger product range also didn’t work: this approach is no longer considered up-to-date in times of delivery services, fast food and a growing number of single-person households. The US company’s share price has collapsed by 94 percent within a year.
