Businesses in financial trouble

[Arthur]

Morrisons rescues McColl's taking on all 16,000 staff

 

Supermarket group Morrisons has won a battle to rescue McColl's, the convenience store and newsagent chain, and taken on all 16,000 staff members.

 

Morrisons beat a rival offer from EG Group, the petrol station empire, owned by the billionaire Issa brothers.

 

Morrisons will pay off McColl's £170m debts and take on its 1,160 shops and pension schemes, with 2,000 members.

 

The supermarket's boss said the deal offered stability and continuity for the business, its staff and pensioners.

 

McColl's was put into administration by PwC on Monday and was immediately sold to Morrisons.

 

Rob Lewis, joint administrator and partner at PwC, said the deal provided "much needed certainty to McColl's 16,000 staff after a period of understandable concern".

 

The McColl's store in the town closest to where I live is in a really bad location with little passing footfall and parking spaces you have to pay for so it didn't come as too much of a surprise when they went into administration. I wonder how many of their other stores are like that?

[6Foot2]

Link: Cosmetics maker Revlon files for bankruptcy in US - BBC News

 

Cosmetics maker Revlon has filed for bankruptcy in the US, as it says supply chain disruptions have driven up the cost of raw materials for its products.

 

The 90-year-old firm says it has also been struggling with supplier payments, inflation and labour shortages.

 

The company says it expects to receive $575m (£466.6m) from its existing lenders to support day-to-day operations.

 

Its shares lost more than 13% in New York trading after the announcement.

 

In a court filing, the company said that supply chain disruptions had prompted intense competition for the ingredients used in its cosmetics. It added that suppliers have also asked to be paid for orders upfront.

 

This has caused "shortages of necessary ingredients across the company's portfolio," Revlon's chief restructuring officer Robert Caruso said in the filing.

 

"For example, one tube of Revlon lipstick requires 35 to 40 raw materials and component parts, each of which is critical to bringing the product to market," he added.

 

As well as the Revlon brand, the company also owns well-known names such as Elizabeth Arden, Almay and Cutex, and fragrances fronted by Christina Aguilera and Britney Spears.

 

In recent years it has faced increased competition from new brands like those backed by celebrities such as Kylie Jenner's Kylie Cosmetics and Rihanna's Fenty Beauty.

 

By filing for Chapter 11 bankruptcy protection in the US Revlon will be able to continue to operate while it is working out a plan to repay its creditors.

 

Revlon's president and chief executive Debra Perelman said the bankruptcy filing will allow the company to "offer our customers the iconic products we have delivered for decades, while providing a clearer path for our future growth".

 

However, the New York Stock Exchange said on Thursday that it had started the process of removing the company's shares from its platform.

 

Revlon was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachman and started selling nail polish soon after. By the mid-1950s it had become an international brand.

 

It was bought by billionaire businessman Ronald Perelman's MacAndrews & Forbes in 1985. Revlon now sells its products in more than 150 countries.

 

Earlier this year, Revlon warned that it was facing "liquidity constraints brought on by continued global challenges, including supply chain disruption and rising inflation".

 

It had $3.3bn of long-term debt at the end of March, and reports of its impending bankruptcy last week caused a slide in its share price.

[RetiredBut]

Link: Harrogate's new vegan restaurant venture collapses - The Stray Ferret

 

 

It is with a heavy heart we have to announce Vertigo is no more.

< < < truncated > > >

 

I used to fly choppers many years ago when on active duty and have some fixed wing time and vertigo is not good vocabulary around a flight line or in the Officer's Club or I suppose anywhere aviator's hang out. I sincerely can't imagine any business wanting to use that as a name for their business.

 

As for the topic here, about businesses in trouble, I have a bad gut feeling we are going to be seeing some even tougher times this year, and maybe next. Too many indicators pointing to the financial wizards being very worried and when they get worried those fancy banking places start to raise their rates, as we are seeing just recently (except in one powerful financial market).

 

Is there another thread around here only for discussing banking policy? Or are we allowed to discuss interest rates in this thread?

[elsiegee40]

 

Is there another thread around here only for discussing banking policy? Or are we allowed to discuss interest rates in this thread?

 

Policy is not the topic of the thread and we are strict in trying to keep threads on topic.

 

We also have a total ban on political discussion which a discussion on policy, assuming we are talking government policy, would stray into

 

[Arthur]

Is there another thread around here only for discussing banking policy? Or are we allowed to discuss interest rates in this thread?

The Edugeek Discord server is probably the best place.

[RetiredBut]

The Edugeek Discord server is probably the best place.

 

I appreciate that, Arthur, but I am afraid that having been insulted by a staff member on this site requires that I completely withdraw from this Online Community. I have just sent a request for my activities here to be completely removed and I am afraid I will not be returning. Very sad for me. But insults just are not proper in any venue.

[6Foot2]

I appreciate that, Arthur, but I am afraid that having been insulted by a staff member on this site requires that I completely withdraw from this Online Community. I have just sent a request for my activities here to be completely removed and I am afraid I will not be returning. Very sad for me. But insults just are not proper in any venue.

Before you go, could you indicate/clarify how you feel that you have been insulted? If this has happened, I would like to avoid accidentally doing the same in the future.

[RetiredBut]

Before you go, could you indicate/clarify how you feel that you have been insulted? If this has happened, I would like to avoid accidentally doing the same in the future.

 

No matter what style of English one uses in discourse or writing (required of me to state that as I was informed there might be some problem with my English because of locale) - - - but no matter in what nation, when this:

 

If, as you claim, ...

 

That only means that there is doubt in the author's mind about my honesty.

 

That is an insult. And it is especially hard on the nerves when I think about the many memorial services I attended as a district officer for the VFW and attended RBL memorial events. In fact, I was once charged with holding the British/UK colours at a ceremony in Hodogaya.

 

Then there was the timing of four posts by that individual where I was very quickly informed, in essence, that I was not welcome in this community. Hint taken. Sayonara!

Edited June 20, 2022 by RetiredBut

[6Foot2]

This has drifted off-topic and looks like it will continue. I will reply in a new thread.

[6Foot2]

Link: Cineworld preparing to file for bankruptcy after pandemic rout | Cineworld | The Guardian

 

Cineworld, the world’s second-largest cinema chain, is preparing to file for bankruptcy after failing to see a quick enough recovery in movie-going since the end of the pandemic.

 

The London-listed business, which has run up debt of more than $4.8bn (£4bn) after losses soared while cinemas were shut during the global coronavirus crisis, has hired lawyers from Kirkland & Ellis and consultants from restructuring experts AlixPartners to advise on the process.

 

The company, which operates 751 sites in 10 countries including the Cineworld and Picturehouse chains in the UK, is expected to file a chapter 11 petition in the US and is considering insolvency proceedings in the UK, according to the Wall Street Journal.

 

Cineworld’s already battered share price crumpled from 20p to 2p after the report. Before the pandemic it was trading at £1.97.

 

The move follows Cineworld’s market value more than halving on Wednesday after the company said it had started talks with stakeholders about a financial rescue package, blaming a lack of blockbuster films for lower-than-expected admissions.

 

The group said it was in “active discussions with various stakeholders” and evaluating strategic options to obtain additional liquidity and potentially restructure its balance sheet to reduce debt. “Any deleveraging transaction will likely result in very significant dilution of existing equity interests in Cineworld,” it warned.

 

Investors reacting to the news sent the company’s market value plunging to less than £50m on Friday, having been valued at as much as £4.4bn before the pandemic all but destroyed the cinema industry.

 

On Wednesday, the chain said its business operations were expected to remain unaffected by its move to seek financial stability and that it “expects to continue to meet its ongoing business counterparty obligations”.

 

Unions representing Cineworld’s 45,000 global workforce, including more than 5,000 in the UK, expressed concern about their fate.

 

“This is very worrying news, not least for the UK’s Cineworld and Picturehouse workforce who have already been through a tumultuous time during the pandemic,” said Philippa Childs, the head of the UK union Bectu.

 

“We will do everything we can to support our members during this challenging time and will be looking to Cineworld to mitigate the impact of any bankruptcy arrangements on its employees.”

 

Cineworld, which is facing an almost $1bn payout for pulling out of a deal to buy its Canadian rival Cineplex, reported a $493m year on year increase in net debt to $4.8bn at the end of 2021.

 

The group made a $708m loss last year. However, revenues more than doubled from $852m to $1.8bn, thanks to the latest James Bond and Spider-Man films. In 2020, the company reported a record $3bn loss.

 

“The firm will blame the lack of summer blockbusters as a reason behind its sharp downfall but in reality its aggressive acquisition plan has taken on too much debt and this was always a huge risk as interest rates rise,” said Walid Koudmani, chief market analyst at the financial brokerage XTB.

 

“Moreover, the move to stay-at-home entertainment and streaming providers has created a pivotal shift in the way consumers enjoy films, and Cineworld simply has not adapted fast enough. It’s all quite sad as the UK’s high street will now likely lose a popular and familiar brand name.”

 

The company admitted about 95 million cinemagoers in 2021, up 75% on the 54 million in 2020 but well below the 275 million who attended before the Covid crisis.

 

The state of Cineworld stands in stark contrast to the performance of AMC Entertainment, the world’s largest cinema group and owner of the Odeon chain in the UK, which said the new Top Gun and Dr Strange films had fuelled a doubling of ticket sales in the US.

 

The company, which has a $12.8bn market value, said July had the highest monthly attendance in US cinemas since before the pandemic.

[6Foot2]

Link: Made.com close to collapse as rescue talks end without buyer | Retail industry | The Guardian

 

Made.com has moved closer to collapsing into administration, after rescue talks to find a buyer for the struggling online furniture business failed.

 

The company, known for its fashionable homeware including velvet sofas, lighting and rattan furniture, announced at the start of October that it was in discussions with a number of interested parties. It had set a deadline for receiving firm offers of the end of the month.

 

The retailer said none of its potential buyers were able to meet the timetable, adding it was “no longer in receipt of funding proposals or possible offers for the issued and to be issued share capital of the company”.

 

As a result, Made.com ended the rescue talks and said it could not be certain that any offer would be made for the business, or that any offer or investment would be suitable.

 

Made.com said in a statement to the stock market: “If further funding cannot be raised, or a firm offer for the company is not received before the company’s cash reserves are fully depleted, the board will take the appropriate steps to preserve value for creditors.”

 

The retailer’s shares plunged by nearly 90% on the London Stock Exchange on Tuesday, taking them below 1p, from a listing price of 200p. The shares have tumbled by 99.5% so far this year.

 

It has been a remarkable reversal of fortunes for the British furniture business, less than 18 months after it floated on the stock market in June 2021 with a market value of £775m.

 

Over that time, shares in Made.com have tumbled from a listing price of 200p to below 1p, and the company said on Tuesday it would consider whether to request a suspension of its shares.

 

It comes after a difficult few months for the company, which had been one of the winners during the pandemic, when locked-down customers spent money doing up their homes.

 

However, Made.com warned of job cuts in July as increasingly cash-strapped consumers reined in their spending, particularly on “big-ticket” items such as furniture.

 

In 2021, when still enjoying strong consumer demand for its products, Made.com was hit by industry-wide supply chain problems, as Covid lockdowns led to global port congestion and extended shipping times lengthened delivery delays.

[Arthur]

Will Deliveroo UK be next?

 

Deliveroo’s sudden collapse leaves delivery riders scrambling to find new jobs

 

Business and delivery riders have been left scrambling to find a replacement for Deliveroo after the company’s sudden departure from Australia overnight.

 

Experts warn Deliveroo’s closure could be the first of several meal-delivery services to disappear due to challenging economic conditions, while prices for deliveries may rise to make the industry more sustainable.

 

Deliveroo shocked employees, contractors, partners and customers on Wednesday when it announced it would go into administration and stop operating in Australia immediately.

 

The company’s website was wiped overnight and its app no longer functions.

 

Riders said they were given no notice of the plans to shut the company.

 

“I was working in the morning, stopping at midday and then suddenly when I wanted to start working again, this notification pops up on the screen of the app,” Rodrigo, a Deliveroo rider said. “And I went to the emails [to] check [and they said] that they cease immediately, effective immediately . So I couldn’t even finish the day yesterday.”

[mavhc]

Paying someone to bring you food would be the most sensible thing to fail in a recession

[Norphy]

"Sensible" seems a bit harsh, but it's certainly logical that a business like that will be first in line to fail if people are having to get food from food banks.

[6Foot2]

Link: M&Co: Renfrewshire clothing chain appoints administrators - BBC News

 

Clothes retailer M&Co has appointed administrators as it collapsed for a second time in just over two years.

 

Financial advisory firm Teneo confirmed it had been brought in on Friday.

 

The Renfrewshire-based company, which used to be known as Mackays, is one of Scotland's best known clothing chains. It currently employs 1,910 staff with 170 shops across the UK.

 

It last collapsed in 2020 but assets were immediately bought back by the family that built it up.

 

In the last week the retailer has shut two stores in Dorchester in Dorset and Droitwich, Worcestershire.

 

Teneo said no immediate redundancies had been made.

 

M&Co will continue to trade while administrators explore a potential sale of the business, the firm added.

 

Gavin Park, one of the joint administrators, said M&Co had experienced a sharp rise in costs like many other retailers which had coincided with a "decline in consumer confidence".

 

He added: "Despite a very loyal customer base, particularly in local markets, and a well-recognised brand, the current economic outlook has placed increasing pressure on the Company's cash position."

[6Foot2]

Link: Flybe airline set to relaunch flights in April | The National Wales

 

Link: Flybe collapse: Shock for staff after new lease of life, says Robinson - BBC News

 

The collapse of regional airline Flybe has been devastating for staff who "felt they had got a new lease of life," an MP has said.

 

Flybe had only restarted operations last April after a previous collapse in 2020.

 

On Saturday morning, its administrator confirmed 277 staff were being made redundant, including many at Belfast City Airport.

 

East Belfast MP Gavin Robinson said it came as a "total surprise and shock".

 

Flybe operated 10 routes from Belfast City Airport, including services to Heathrow, Manchester, Glasgow and Amsterdam.

 

When Flybe collapsed in 2020 it was responsible for about 80% of Belfast City Airport's flights.

 

More recently Flybe made up about 14% of flights at the airport.

 

Belfast City Airport's importance

 

The first flight out of Belfast City Airport after the collapse had been due to leave for Newcastle at 07:00 GMT on Saturday.

 

"When I spoke to the airport they told me they first heard about this at 04:30," Mr Robinson told BBC Radio Ulster's Good Morning Ulster programme.

 

"Belfast City Airport is hugely important and very successful in Belfast terms and in economic terms," he said.

 

The airport had been in talks with the company about its long-term plans last week, and that was seen as a fresh start for Flybe, added Mr Robinson.

 

"It was a new beast but gave vital opportunities for those who had worked for Flybe before to get job opportunities," he said.

 

Offers from other airlines welcomed

 

Mr Robinson reiterated that Flybe had covered a small proportion of the routes at the airport and it was engaging with other airlines to fill those gaps.

 

Overtures from Ryanair and Easyjet to Flybe - both to staff whose jobs were at risk and to customers whose flights had been cancelled - were comforting, he added.

 

The British Airline Pilots' Association (Balpa) said it had received phone calls in the early hours of Saturday morning from worried Flybe staff.

 

But the union's leader Martin Chalk said there were jobs out there...

[6Foot2]

Link: HSBC swoops in to rescue UK arm of Silicon Valley Bank - BBC News

 

HSBC has swooped into buy the UK arm of collapsed US Silicon Valley Bank (SVB), bringing relief to UK tech firms who warned they could go bust without help.

 

Customers and businesses who had been unable to withdraw their money will now be able to access it as normal.

 

The Treasury said the deal, which was thrashed out with HSBC through the night to be done before trading resumed on Monday, involved no taxpayer money

 

HSBC said it paid just £1 for the SVB's UK arm after it failed on Friday.

 

Silicon Valley Bank - which specialised in lending to technology companies - was shut down by US regulators on Friday in what was the largest failure of a US bank since 2008.

 

Its collapse sent shockwaves across the tech industry over the possible impact it could have on businesses, with some firms telling the BBC they could go bust if deposits were not secured.

 

The deal came after all night talks involving chancellor Jeremy Hunt, the prime minister, the Bank of England governor, HSBC bosses and civil servants to try to find a solution before firms began trading again on Monday morning.

 

The Bank of England said no other UK banks had been "materially affected" by SVB's collapse and said the wider banking system remained "safe, sound, and well capitalised".

 

Although the UK arm of SVB was small with just over 3,000 business customers, its collapse would have presented a risk for a sector which the government views as pivotal to the UK's future economic success.

 

Mr Hunt said such firms were often "fragile".

 

"Some of them only had bank accounts with SVB UK and so for that reason we were faced with a situation where could have seen some of our most important companies, our most strategic companies, wiped out and that would have been extremely dangerous," he added.

 

But Mr Hunt insisted there was "never a systemic risk to our financial stability in the UK".

 

Sebastian Weidt, chief executive of Universal Quantum, a tech company which employs about 40 people and held all its funds with SVB, said the deal was a "huge relief".

 

He told the BBC the last 48 to 72 hours had been "unbelievably stressful" and said while his company had been trying to make plans to mitigate the potential impact, had a deal not been made it would have been "pretty detrimental to the whole sector".

 

Toby Mather, chief executive and co-founder of Lingumi, an education technology start-up said 85% of its cash was tied up with the bank and he'd had a very "anxious weekend".

 

"We had enough money in bank accounts outside the UK and enough revenue coming through each week from our customers that we could look our staff in the eyes at nine o'clock this morning and say we can make payroll in two weeks, but it would have been very uncertain from then", Mr Mather said.

 

What went wrong at Silicon Valley Bank?

The rescue deal for the UK arm comes after the US agreed a rescue deal for customers in the US bank too with all depositors fully protected.

 

SVB specialised in lending to start-up firms, and the company served nearly half of US venture-backed technology and healthcare companies that listed on stock markets last year.

 

The firm, which started as a California bank in 1983, was under pressure as higher interest rates made it harder for its customers to raise money through private fundraising or share sales. More clients were withdrawing deposits in a trend that snowballed last week.

 

The bank collapsed in the US on Friday after failing to raise enough money to plug losses from the sale of assets, mainly US government bonds, that were affected by higher rates.

 

Its problems sparked fears it could lead to the collapse of many smaller UK tech firms, with more than 200 bosses of UK tech companies signing a letter addressed to Mr Hunt calling for the government to step in.

 

One source in a tech firm previously told the BBC between 30% and 40% of UK start-ups employing up to 50,000 people could have been affected by the collapse.

 

But while the deal with HSBC has been widely welcomed, the Bank of London - a UK clearing bank - said it was a "missed opportunity".

 

The bank, which was among firms involved in early-stage talks and had put forward a rescue bid for SVB UK, said: "It cannot be right that, once again, the heritage banks that have provided a poor service to UK entrepreneurs over many years benefit from their already dominant position."

 

The bosses of UK companies with money deposited in the UK based arm of Silicon Valley Bank can breathe easier this morning as their funds have been secured by HSBC's takeover.

 

The failure of its US parent company was a much more dangerous situation given its larger size and explains the different approach taken there where other US banks will help fund its rescue through banking deposit insurance schemes.

 

However, the episode does highlight the stresses that have emerged in the financial system as a result of the sharp rise in interest rates over the last year. Other stresses may emerge but this is not the harbinger of doom we saw when Lehman brothers collapsed shaking the entire financial system to its core.

 

The Treasury and the Bank of England will no doubt use this speedy response as an example of lessons learned during the financial crisis but the fact that a bank with concentrated importance in one sector ended up being sold for £1 will still beg questions of the regulatory regime.

Edited March 13, 2023 by 6Foot2

[6Foot2]

Link: Sheffield United stance on administration fears after report outlines major financial problems - YorkshireLive

 

Sheffield United are not commenting on a report this evening that claims the club is battling to stave off the threat of administration.

 

The Daily Mail has tonight published a report that states the Blades are facing a 12-point deduction if they enter it before next Thursday and that they have introduced a series of cost-cutting measures to avoid the sanction.

 

It is being claimed that undersoil heating has been turned off at their Shirecliffe training ground 'in a desperate attempt to ensure they can pay their players this month' and that suppliers have not been paid.

 

The club's financial problems have been well-documented this season. Currently under a transfer embargo for failing to keep up with transfer payments, believed to be owed to Liverpool for the purchase of Rhian Brewster and Malmo for Anel Ahmedhodzic, Sheffield United are also in limbo as Dozy Mmobuosi looks to complete his takeover of the club.

 

That is currently with the EFL, who are yet to give it the green light.

 

Paul Heckingbottom and his players are looking to ease the concern by securing promotion to the Premier League. They are currently in a superb position to do so, six points clear of third-placed Middlesbrough and as Yorkshire Live explained earlier today, their FA Cup run has so far generated the best part of £1m and victory on Sunday at home to Blackburn would take the pot to £2m.

 

Heckingbottom refused to criticise his players following the defeat to Luton last time out at home adding, 'when they have had to put up with what they have put up with this season'.

 

His players have been forced to train indoors at times due to the well-publicised issue of affording the undersoil heating and the delay in connecting it after investing in a new training pitch in the summer.

 

However, Heckingbottom revealed in the build-up to the Luton match they had 'trained all week' on the new pitch.

 

United's problems are no secret. Having sold only one player upon relegation, the club's hierarchy has put the focus on keeping the first-team squad together in a bid to return to the Premier League.

 

That has meant a number of projects have been put on hold and unpaid bills as the club looks to manage its way through the season in the hope of getting to May unscathed.

 

Yorkshire Live has been told talk of administration is wide of the mark. Their actions in the January window did not reflect a club so close to administration.

 

United turned down the best part of £50m in transfer fees for Iliman Ndiaye and Sander Berge, which suggests the financial issues are manageable between now and May.

 

Sheffield United have informed Yorkshire Live they will not be commenting on the article.

[6Foot2]

Link: Richard Branson's Virgin Orbit files for bankruptcy, to seek buyer | Reuters

 

Richard Branson's Virgin Orbit Holdings (VORB.O) filed for Chapter 11 bankruptcy on Tuesday after the satellite launch company failed to secure the long-term funding following a January rocket failure.

 

The Long Beach, California-based company lodged the filing in the U.S. Bankruptcy Court for the District of Delaware seeking a sale of its assets after announcing the layoff of roughly 85% of its 750 employees last week.

 

"We believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale," Virgin Orbit CEO Dan Hart said in a statement.

 

Shares in the company fell 18% in pre-market trading.

 

The company listed assets of about $243 million and total debt at $153.5 million as of Sept. 30 in the filing.

 

Virgin Orbit went public in 2021 through a blank-check deal, raising $255 million less than expected.

 

Spun off from Branson's space tourism firm Virgin Galactic in 2017, Virgin Orbit air-launches rockets from beneath a modified Boeing (BA.N) 747 plane to send satellites into orbit.

 

Virgin Orbit's strategy has been that launching small rockets from a 747 in flight would allow for short-notice launches from anywhere including for tactical military purposes, addressing a need highlighted by the conflict in Ukraine.

 

But a shift in demand toward larger launch rockets and more cost-effective shared rides to space on SpaceX's Falcon 9 rocket over the past two years raised the competitive stakes for Virgin Orbit, analysts and industry executives have said.

 

Virgin Orbit's sixth mission in January with its centerpiece LauncherOne rocket, the first rocket launch out of Britain, failed to reach orbit and sent its payload of commercial and defence-related research satellites plunging into the ocean.

 

The company scrambled to find new funding after the rocket failure, halting operations and furloughing nearly all its employees on March 15 to conserve cash.

 

The UK Space Agency said the company's future was a commercial matter. Britain, which has two vertical-launch spaceports due for debuts next year, is committed to being a key provider of commercial small satellite launches, it said...

[LeMarchand]

Link: Richard Branson's Virgin Orbit files for bankruptcy, to seek buyer | Reuters

 

So it's crashing to earth?

[6Foot2]

Link: Tupperware warns it could go bust without emergency funding | Business | The Guardian

 

Tupperware, the 77-year-old company famed for its airtight food containers, has warned it could go bust if it cannot raise emergency funds to stay afloat.

 

Shares in the US company, which became famous in the 1950s and 1960s when agents held “Tupperware parties” to sell the plastic containers to friends and families, crashed almost 50% this week after a warning to investors that there was “substantial doubt about the company’s ability to continue as a going concern”.

 

“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” said its chief executive, Miguel Fernandez. “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.”

 

The company, founded by chemist Earl Tupper in Massachusetts in 1946, has seen its shares drop by 95% over the past 12 months as it struggles to match more innovative storage competitors who promote their products to younger people on TikTok and Instagram.

 

Tupperware said it would not have enough cash to fund its operations if it was unable to secure additional funding in coming days. The company said it was considering making staff redundant and selling some of its real-estate portfolio to try to save money.

 

It said it “currently forecasts that it may not have adequate liquidity in the near term” and “has therefore concluded that there is substantial doubt about its ability to continue as a going concern”.

 

It is the second time in less than six months that Tupperware has issued a “going concern” warning.

 

The New York stock exchange also warned Tupperware was in danger of being delisted from the stock market as it is late filing its annual report. The company said it hoped to file a report within the next 30 days, but added “there can be no assurance” it “will be filed at such time”.

 

Neil Saunders, a retail analyst and managing director of GlobalData Retail, said Tupperware was suffering from a sharp decline in the number of sellers, a drop in consumers buying home products after the pandemic and “a brand that still does not fully connect with younger consumers”.

 

Tupperware products were initially sold in department stores, but sales were slow as consumers were unsure how to use the plastic containers. At the time, people were used to using glass or ceramic jars and were unfamiliar with using Tupperware’s patented “burping” seal to force out air.

 

Then a saleswoman called Brownie Wise, who was selling cleaning products at parties, added Tupperware into the mix and demonstrated how versatile the containers could be.

 

Tupper hired her as vice-president for marketing and she ran the Tupperware parties operations. At one point the company had more than 1 million representatives selling its products at parties and earning a commission on each sale.

 

skip past newsletter promotionafter newsletter promotion

The Tupperware party phenomenon reached the UK in 1960 when the first event was held in Weybridge, Surrey. Popular initial products included the “Dip ‘N’ Serve” serving tray, the portable cake carrier the “Pie Taker” and the “Party Bowl”.

 

The Smithsonian magazine described how at Tupperware parties a “well-dressed dealer with practiced demonstration skills would show the hostess and her friends how to use this high-tech, colourful new kitchenware”.

 

“She’d lead the group in dramatic party games, like tossing a sealed Wonder Bowl full of grape juice around the room to demonstrate the strength of its seal. They sold products at retail prices, but Tupperware only took the wholesale price of an item.”

 

The last Tupperware party was held in the UK in 2003 when the company ended contracts with the 1,500 people selling its products here.

[Dos_Box]

Sadly, anyone can make 'Tupperwear' these days, and for not a lot of financial outlay either.

Mind you, I can remember the Tupperwear Parties in the 70's and pretty much everyone had some somewhere in the house.

[southhamster]

Sadly, anyone can make 'Tupperwear' these days, and for not a lot of financial outlay either.

Mind you, I can remember the Tupperwear Parties in the 70's and pretty much everyone had some somewhere in the house.

I can remember my mum having some. We ended up with all kinds of weird plastic stuff that hardly ever got used as she felt obliged to buy something!

[MrEprise]

Maybe the reason they're doing so badly may be because they still seem to be relying on the Tupperware parties for sales (at least as far as I can tell) and I know of no brick & mortar stores that sell any of their products. If there are any that I don't know of, I'd say they've not publicised it very well if at all, especially if their website is anything to go by as it didn't have any info on where I could buy.

 

I did look at Amazon earlier and found a few of their products on there, however looking at these I feel that none of it stands out from the crowd anymore compared to stuff from companies like Sistema for example, who IMO make vastly better products.

[6Foot2]

While this isn't a perfect fit for this thread, I thought it was worth posting nonetheless:

 

Link: World Largest Banknote Printer Issues Profit Warning

 

With demand plunging to a two-decade low, printing money isn't as lucrative as it used to be.

 

De La Rue, the world's largest banknote maker, issued a profit warning on Wednesday, flagging a lower demand for cash.

 

"The demand for banknotes has been at the lowest levels for over 20 years, resulting in a low order book going into FY24," the 210-year-old company said in a Wednesday filing to the London Stock Exchange. De La Rue prints banknotes and supplies raw materials for physical cash across 140 countries, including the UK, Thailand, and Qatar.

 

The company now expects its full-year adjusted operating profit for the 2024 fiscal year to be around low-£20 million, or $25 million, half of its previous unadjusted estimates of £40.1 million, according to Refinitv data seen by Insider.

 

"The challenge at the moment is that there simply isn't quite the demand there to be where we want to be, which is disappointing," Clive Vacher, the CEO of De La Rue, told Reuters on Wednesday.

 

Central banks snapped up banknotes during the pandemic, but they are now working through the stockpile before acquiring new stocks, De La Rue said in November 2022. Demand for banknotes has also been depressed due to government finances being squeezed by inflation, the cost-of-living crisis, and access to foreign exchange in some cases.

 

It doesn't help that the modern banknote — much of which is made from polymer — lasts much longer than paper banknotes. The Bank of England estimates its polymer banknotes made by De La Rue last for at least two-and-a-half times longer than paper.

 

De La Rue said Wednesday it is discussing with banks about amending lending terms that will take into account the company's revised outlook and higher interest rates.

 

The company's profit warning on Wednesday sent De La Rue's share prices plunging nearly 20% to £40.50 apiece on the same day. Share prices are down 1.5% at £39.90 at 9.19 a.m. London time on Thursday. The stock is trading nearly 50% lower so far this year.

 

On the upside, De La Rue expects revenues from its authentication division to exceed £100 million for the first time in the coming fiscal year. This is in part driven by demand for Australian passports, for which De La Rue is a supplier, according to the Wednesday filing.

 

The company's fortunes are well chronicled with its Wednesday profit warning the third since January 2022. It was already closing production lines and cutting jobs as demand for cash slowed in 2015 due to the rise of mobile internet-based payments...