An iconic kitchen essentials brand that once took the world by storm is facing financial collapse.
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US food storage company Tupperware Brands, which distributes in Australia, revealed it has engaged financial advisers due to "substantial doubt about its ability to continue as a going concern".
It came as the company's shares fell by nearly 50 per cent on April 10.
"Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position," Tupperware chief executive Miguel Fernandez said in a statement.
"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."
Is the Tupperware party over?
Tupperware was founded in 1946 and launched a marketing model that would soon be replicated around the world.
Tupperware parties began in the 1950s with hosts demonstrating and selling the products to their guests.
The model was adopted by makeup brands such as Avon, and kitchen appliance Thermomix, where products are only sold through consultants.
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Strategic marketing expert Professor Jack Cadeaux from the University of NSW said the party sales method may no longer be effective.
He likened the party hosts to social media influencers, and said the social and demonstration aspects of the method could be achieved online.
"Social media networking options may have hurt the in-home face-to-face networking model," Professor Cadeaux said.
"Much more efficient online channels for acquisition are now available for both promotion and sales.
"The quality and value of all such products are increasingly much easier to communicate now via online videos."
Professor Cadeaux also explained brands like Tupperware face strong competitors using more conventional sales techniques with the ability to "reach huge markets".
"I still own and use a few very old Tupperware pieces - some are even hand-me-downs - and their quality and durability were excellent," he said.
"But that may also pose a problem... there is very little benefit in creating loyalty for a host as these are often one-off purchases with little repeat potential."
