Tupperware’s stock plunged nearly 50% on Monday after a dire warning that the company’s future is uncertain.
The manufacturer of containers stated in a regulatory filing late on Friday, there is “substantial doubt about the company’s ability to be a concern” and that it is collaborating with financial advisors to obtain financing to remain afloat.
Perspectives on Tupperware
Tupperware stated that it could not fund its operations without additional funding. The company said it is looking into possible layoffs and is looking at its real estate portfolio for ways to save money.
The New York Stock Exchange also cautioned that Tupperware’s stock could be delisted for failing to submit the required annual report.
Miguel Fernandez, CEO stated in a press release, “Tupperware began a journey to turn around our operations, and today represents an essential phase in addressing our capital and liquidity position.” We are instantly seeking additional funding to stabilize the state of our finances, and the firm is doing all that is possible to minimize the effects of the past few days.
In recent years, the 77-year-old company has struggled to stay relevant in the face of competitors. It has been attempting to shed its conservative image and attract younger customers by offering trendier, more up-to-date products. It also reached a deal with Target to sell its products last year.
According to Neil Saunders, a retail analyst and managing director at Global Data Retail, Tupperware is suffering from several issues, some of which include “a razor-sharp drop in the amount of sellers, a consumer pullback on home goods, and a company that still does not fully connect with younger consumers,” according to the report.