Tupperware files bankruptcy, $700 million in debt 🥶
Stack Wealth
investments tailored to your goals, curated by your dedicated wealth manager
Last week in a nutshell!
Tupperware filed for Chapter 11 bankruptcy.
Tupperware, once a beloved household name known for its colourful plastic containers and airtight food storage solutions, has filed for Chapter 11 bankruptcy.
This filing marks a significant turn for the iconic US-based kitchenware company, which has struggled with declining sales and mounting debt over recent years.
A Brand Once Trusted, Now in Financial Trouble
Founded in 1946 by chemist Earl Tupper, Tupperware revolutionised food storage with its innovative airtight seal. The brand enjoyed widespread popularity for decades, becoming a staple in homes across America and India.
Why Tupperware’s Business Model Struggled to Keep Up
Tupperware’s famous direct-selling approach, which relied on social events known as “Tupperware parties,” couldn’t compete with the rise of online shopping.
The company struggled to modernise its approach as consumer preferences shifted towards digital convenience.
Shockingly, Tupperware allocated less than 1% of its budget to digital advertising, leaving the brand lagging behind competitors in a world dominated by e-commerce.
Founded in 1946 by chemist Earl Tupper, Tupperware revolutionised food storage with its innovative airtight seal. The brand enjoyed widespread popularity for decades, becoming a staple in homes across America and India.
Why Tupperware’s Business Model Struggled to Keep Up
Tupperware’s famous direct-selling approach, which relied on social events known as “Tupperware parties,” couldn’t compete with the rise of online shopping.
The company struggled to modernise its approach as consumer preferences shifted towards digital convenience.
Shockingly, Tupperware allocated less than 1% of its budget to digital advertising, leaving the brand lagging behind competitors in a world dominated by e-commerce.
The Financial Situation: Mounting Debt and Declining Sales
Tupperware’s bankruptcy filing comes after months of negotiations with creditors. The company’s financial situation worsened despite attempts to manage $700 million in loans.
Reports indicate that Tupperware has listed assets between $500 million and $1 billion, while its liabilities are between $1 billion and $10 billion.
The kitchenware giant was also given some relief from creditors on debt and interest payments, but it wasn’t enough to reverse the business’s downturn.
Is This the End of Tupperware?
Although Tupperware has filed for bankruptcy, this doesn’t necessarily mean the end for the brand. The Chapter 11 filing provides an opportunity for reorganisation.
The company has expressed its intent to continue operations during the bankruptcy process and is seeking court approval to start a sale process for the business. Tupperware is also looking to transform into a more technology-driven company, aiming to embrace the digital age.
India’s IPO frenzy reminds people of the dotcom bubble.
During the dot-com bubble, tech stock prices surged dramatically on the first trading day. This is very similar to recent IPOs in India, which saw huge oversubscriptions and average listing-day gains of 35%.
Today, retail investors are focused on short-term post-listing gains, and to fuel their demands, IPOs are severely underpriced. This prioritises excitement and speculation over long-term value, which intensifies the bubble.
Recommended by LinkedIn
Crorepatis in India have risen by 63%
Centrum's report shows that the number of people earning ₹10 crore has risen by 63% in the last five years. This rapid accumulation of wealth is further reflected in the total income of these high earners, which has surged by a staggering 121% CAGR between FY19-24, reaching ₹38 lakh crore.
The report projects the wealth of India’s HNIs and Ultra HNIs to increase from $1.2 trillion in 2023 to $2.2 trillion by 2028.
Nirmala Sitharaman Launches NPS Vatsalya Scheme For Child Savings
NPS Vatsalya scheme will allow parents to save for their children's future by investing in a pension account.
In the last 10 years, NPS has 1.86 crore subscribers with an Asset Under Management (AUM) of ₹ 13 lakh crore.
Week in a number
₹16.7 Trillion
Commerce Secretary Sunil Barthwal said that the government is planning to expand India’s share in global e-commerce exports to $200 billion by 2030.
The Markets in a Minute
Watching the markets 24/7 is not easy. That's why we do it for you. Here's where the markets ended this Friday, the top gainers & losers of this week and finally the Market Mood Index (MMI).
The MMI is a sentiment tool that describes the current mood in the market as emotions.. A high index signals greed, i.e., people buying more, while a lower index reflects fear and selling.
Finance icebreakers
Let's say company XYZ Ltd. has debts of ₹50 crore and assets of ₹20 crore.
Bankruptcy Filing Process:
Decision: XYZ Ltd. files for Chapter 11, allowing it to operate while restructuring.
Court Process: They submit a petition detailing their finances.
Automatic Stay: This halts creditor actions against the company.
Reorganization Plan:
XYZ Ltd. proposes to cut costs by 20%, sell non-essential assets and negotiate extended payment terms with creditors.
After several months, XYZ Ltd. reduces its debt to ₹30 crore and improves operations, successfully emerging from bankruptcy.
answered by
Tushar Vyas
Co-founder at Stack Wealth
Thank you for reading all the way. See you next week! - Stack Wealth team