Financial woes for Tupperware: Sellers still trade gold

Well-established Tupperware sellers in Quebec aren’t afraid to file for bankruptcy of their banner. On the contrary, their business never flourished.

• Also Read: Tupperware on the brink of bankruptcy?

“A company like Tupperware does not go bankrupt. It is an icon that has been around for over 76 years. If they can’t refinance, I don’t worry, I know this is a company that will be bought,” said Sylvain Lalonde, director of Tupperware Elite in Quebec.

Tupperware Brands lost 42% in action on Wednesday after publishing its 3rd quarter financial results. The company announced in a press release that sales were down 20% compared to last year. Its debt exceeds $700 million.

A manufacturer may be unable to meet the covenants of its credit agreement, “raising substantial doubt about the company’s ability to continue in business.”

Difficulties associated with Covid and the impossibility of organizing regular “Tupperware parties” at home have already shaken the legendary business model of the American company. Added to this now is inflation, which has increased Tupperware prices by 10%, and environmental challenges.

Quebec on the rise

In Quebec, the situation is different. With 6,400 advisors, Mr. Lalonde’s sales team saw its turnover increase from $2.5 million in 2019 to over $7 million in 2021. And the growth continues.

“In Quebec, we are growing (…), supporting the director. Sad to say, but covid has been amazing for our business because people are starting to cook at home, take more time, go to the grocery store less often. This allowed many mothers to join the company to sell around them.

Sales group Les Diamonds, led by María Mariano, majoring in Quebec, has tripled its sales since 2019 to $50 million. A spokesperson for Tupperware’s parent company confirmed the increased engagement domestically.

New model online

Recipe for success in Quebec? For being able to turn the ship on board, supports the entrepreneur. Break out of the pattern of face-to-face meetings at home. Like an influencer, commerce is now done online.

Consultants always promote their “Tupperware way of life” to their community through cooking or freezing events on the web.

Mr. Lalonde believes the company has been able to be more active in Quebec than elsewhere. Les Diamonds team is recognized as the most successful Tupperware team in the world in 2021.

Tupperware on the brink of bankruptcy?

Could this be the beginning of the end for the infamous Tupperware recipes and salon get-togethers that made it famous?

If we are to believe the plastic container giant’s latest financial results published on Wednesday, nothing is looking good.

Shares of Tupperware Brands fell 42% on Wednesday after publishing 3 financial results.^e During the quarter, it shows that the company’s debt is increasing significantly relative to its profits.

While Tupperware Brands has $103 million available, its debt exceeds $700 million.

The manufacturer may not be able to meet the covenants in its credit agreement, “raising significant doubt about the company’s ability to continue as a going concern,” Tupperware reported in a statement on its financial results.

Net sales were $302.8 million, down 20% year-over-year from $376.9 million in the same period a year earlier.

Gross profit was $196.6 million, or 64.9% of net sales, compared to $247.9 million, or 65.8% of net sales, in the prior year period.

Founded in 1946, Tupperware distributes its products in nearly 70 countries primarily through independent distributors worldwide.

– in collaboration with QMI Agency

Who is Tupperware?

• The company was founded in 1946 by American chemical engineer Earl Silas Tupper, who invented the first Tupperware bowls.
• The brand’s clever distribution method in the form of “Tupperware Home Parties” contributed greatly to its success.
• The brand is present in nearly 100 countries worldwide.