Tupperware has warned it could go bankrupt as stock prices continue to fall for the company known for its kitchen and storage containers.
Founded in 1946, the company said there was “substantial doubt about the ability of the business to continue as a going concern” in a regulatory filing filed last Fridayadding that Tupperware has engaged with financial advisers to find financing to keep the business going.
Concerns about Tupperware came after the New York Stock Exchange warned that the company’s stock could be delisted because it failed to file an annual report for 2022. While Tupperware said it planned to file a report within the next 30 days, he added “there can be no assurance” that it “will be filed then”.
Tupperware seeks additional funds
Tupperware said it is reviewing several aspects of its business, including its cash management, its real estate portfolio for available assets and possible layoffs.
In March, the company said its sales force had fallen 18% in 2022, but in its latest announcement it said 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 situation,” said Miguel Fernandez, President and CEO of Tupperware Brands, said in a press release. “The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional funding and redress our financial position.”
Tupperware added that if it “is unable to obtain adequate capital resources or changes to its credit agreement, it may not have adequate short-term liquidity.”
Tupperware stock drops
Tupperware stock fell $1.18 to close at $1.24 on Monday, the Associated Press reported. The company’s shares have fallen 98% in the past 12 months, according to MarketWatch.
What happened to Tupperware?
Tupperware has seen its sales continue to fall over the years.
In MarchTupperware said its 2022 net sales were $1.3 billion, down 18% from a year earlier, citing lower sales and operating margins as the main reasons for the drop.
Neil Saunders, Retail Analyst and Managing Director at GlobalData Retail, told CNN the brand has not been able to fully connect with younger consumers.”
“The company was once a hotbed of innovation with kitchen gadgets to solve problems, but it’s really lost its edge,” Saunders said.
Tupperware is also facing a trial investors because it did not “disclose its serious internal control issues” and included inaccuracies in its 2020 report.
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