Tupperware warned it could be going out of business, as stock prices continue to fall for the company known for its kitchen and storage containers.
Founded in 1946, the company said there is “substantial doubt about the company’s ability to continue as a going concern” in a regulatory filing filed last Friday, adding Tupperware has engaged with financial advisors to find financing to keep the company in business.
Concerns for Tupperware came after the New York Stock Exchange warned the company’s stock could be de-listed because it didn’t file an annual report for 2022. While Tupperware said it plans to file a report within the next 30 days, it added “there can be no assurance” it “will be filed at such time.”
Tupperware seeks additional funding
Tupperware said it is reviewing several aspects of its company, including its cash management, real estate portfolio for property available and possible layoffs.
In March, the company said its sales force fell 18% in 2022, but in its latest announcement, said the results will “differ significantly” once it files its annual report.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” Miguel Fernandez, president and CEO of Tupperware Brands, 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.”
Tupperware added if it’s “unable to obtain adequate capital resources or amendments to its Credit Agreement, it may not have adequate liquidity in the near term.”
Tupperware stock falls
Tupperware stock went down $1.18 to close at $1.24 Monday, the Associated Press reported. The company’s stock has fallen 98% in the last 12 months, according to MarketWatch.
What happened to Tupperware?
Tupperware has seen its sales continue to drop over the years.
In March, Tupperware said its net sales for 2022 were $1.3 billion, an 18% decrease to the year prior, citing lower sales and operating margins as the primary reasons for the decline.
Neil Saunders, retail analyst and managing director at GlobalData Retail, told CNN the brand hasn’t be able to fully connect with younger consumers.”
“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge,” Saunders said.
Tupperware is also facing a lawsuit from investors because it didn’t “disclose its serious issues with internal controls” and included misstatements in its 2020 report.
Read more at usatoday.com.
