Tupperware stares at shut down; shares plunge by 50%

NEW YORK: Tupperware shares fell nearly 50 pc on Monday following a bleak warning that its future is looking murky, the media reported.

In a regulatory filing late Friday, the container maker said there’s “substantial doubt about the company’s ability to continue as a going concern,” and that it’s working with financial advisers to find financing to stay afloat.

Tupperware said it won’t have enough cash to fund its operations if it doesn’t secure additional money. The company said it is exploring potential layoffs, and it’s reviewing its real estate portfolio for potential money-saving efforts, it was reported. The New York Stock Exchange also warned that Tupperware’s stock is in danger of being de-listed for not filing a required annual report, it was reported.

“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” CEO Miguel Fernandez said in a 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 financing and address our financial position.” The 77-year-old business has been struggling in recent years to maintain its relevance against rivals. It has been trying to shed its staid image and attract younger customers with newer and trendier products. It also struck a deal with Target last year to sell its products.

Several issues are hurting Tupperware, including a “sharp decline in the number of sellers, a consumer pullback on home products, and a brand that still does not fully connect with younger consumers,” according to Neil Saunders, retail analyst and managing director at GlobalData Retail, it was reported. Saunders said Tupperware is in a “precarious position” financially as it’s struggling to grow sales, and since it’s asset-light it doesn’t have “much capacity to raise money.”