The future of 77 year old MLM company Tupperware is uncertain.

In an April 4th regulatory filing, Tupperware expressed “substantial doubt about the company’s ability to continue as a going concern”.

While I’ve seen this boilerplate statement in many MLM company regulatory filings, Tupperware’s operational status does seem to warrant concern.

BehindMLM hasn’t officially reviewed Tupperware. As part of me loosely keeping track of the MLM industry at large, I noted last year Tupperware began directly selling through Amazon and Target.

It’s part of Tupperware’s bigger strategy to reinvent the brand, with plans to grow the business through multiple retail channels and get its products in front of younger consumers who never experienced the era of Tupperware parties.

This suggested things weren’t going well, as it put the MLM company in direct competition with its distributors.

Outside of the US Tupperware was also recently busted fabricating distributor autoship orders in Mexico. That conduct dates back to 2017 or so.

MLM companies transitioning to retail isn’t anything new. It happens from time to time, typically screwing over distributors in the process.

Tupperware however has kept its MLM business going, leaving distributors in the dark as to their future.

Not surprisingly, Tupperware distributorship has plummeted.

As disclosed in Tupperware’s April 7th filing, the company has experienced a “sharp decline in the number of sellers”.

Additionally, as reported by CNN on April 10th;

Tupperware said it won’t have enough cash to fund its operations if it doesn’t secure additional money.

The company said it is exploring potential layoffs, and it’s reviewing its real estate portfolio for potential money-saving efforts.

The New York Stock Exchange also warned that Tupperware’s stock is in danger of being de-listed for not filing a required annual report.

Personally I don’t think Tupperware is going to be able to continue long-term as it has. If retail doesn’t pick up, it’s over.

What I suspect will happen is we’ll see Tupperware sold off at some point.

Due to its long history and unique product inventory (within the MLM industry), I don’t think we’ll see Tupperware acquired by another MLM company. I think it’s far more likely to be picked up by an existing competitor.

Bit hard to predict when this will happen but with Tupperware shares down 93% over the past 12 months, I don’t think predicting something happening within 12 months is unreasonable.

Update 17th September 2024 – On September 17th, quoting Bloomberg, Reuters reported Tupperware is “preparing to file for bankruptcy as soon as this week”.

Update 18th September 2024 – Tupperware filed for Chapter 11 bankruptcy on September 17th, 2024.