Vietnamese customers rush to buy Tupperware after brand files for bankruptcy
Vietnamese customers rush to buy Tupperware after brand files for bankruptcy
Crowds of Vietnamese, mainly women, flocked to Tupperware stores in Ho Chi Minh City to buy kitchenware one day after the American 78-year-old food storage and kitchen products company filed for bankruptcy in the U.S. state of Delaware on Tuesday following years of falling popularity and financial troubles.
Customers select Tupperware products at a Tupperware store on Tran Nhat Duat Street in District 1, Ho Chi Minh City. Photo: Thao Thuong / Tuoi Tre |
Vietnamese customers rushed to buy the last Tupperware products likely to be sold in the country, with many expressing deep regret that the company had declared bankruptcy.
The Tupperware store on Tran Nhat Duat Street in downtown Ho Chi Minh City is currently offering discounts on many of its plastic food containers.
An employee of the store said that she was not informed of the company’s bankruptcy.
“It was just announced that the store would run a promotional program to offer big discounts from August 31 to September 30,” the employee said.
Nguyen Thi Sinh, an office worker in Phu Nhuan District, told Tuoi Tre (Youth) newspaper that she was upset to hear the brand would go out of business.
“Tupperware products are good, and the refrigerator in my house is full of Tupperware containers,” she shared.
Mai Anh Chi, a resident of District 1, said that she also uses Tupperware products.
“Though Tupperware products are more expensive than other items sold by other brands, they are not only highly durable but also safe for our health,” she said.
“I don’t know what brand I’ll switch to in the future.”
Tupperware’s popularity exploded in the 1950s, but its sales slumped in recent years as the company struggled to place more of its products in retail stores and online sales platforms, Reuters reported.
Although it was once a household name, it became less popular with younger customers.
Established in 1946, Tupperware last month raised doubts about its ability to remain in business after flagging bankruptcy risk several times due to liquidity constraints.
The company has US$812 million in debt, much of which was purchased by distressed debt investors at a deep discount in July, Reuters cited court filings.
Those new lenders had sought to use their debt position to seize Tupperware assets including its intellectual property such as its brand, pushing to the company to seek bankruptcy protection, Reuters reported Tupperware as saying.
The firm's shares were trading at $0.5099 Monday, well down from $2.55 in December last year, according to AFP.
Tupperware entered Vietnam in October 2016, the Vietnamese business of the company said on its website.
After one year of its operation, Tupperware Vietnam ran some 30 stores in major cities and provinces such as Hanoi, Ho Chi Minh City, Da Nang City, and Binh Duong Province.
Its 250th store in Vietnam was put into operation in October 2022.
