Tupperware stock plunges after warning it could go out of business

Tupperware shares fell practically 50 per cent Monday following a bleak warning that its future is wanting murky. 

In a regulatory submitting late Friday, the container maker stated there’s “substantial doubt about the company’s ability to continue as a going concern,” and that it is working with monetary advisers to seek out financing to remain afloat.

Tupperware stated it will not have sufficient money to fund its operations if it would not safe further cash. The firm stated it’s exploring potential layoffs, and it is reviewing its actual property portfolio for potential money-saving efforts.

The New York Stock Exchange additionally warned that Tupperware’s inventory is in peril of being de-listed for not submitting a required 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,” CEO Miguel Fernandez stated in a press launch. “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 lately to keep up its relevance in opposition to rivals. It has been attempting to shed its staid picture and entice youthful prospects with newer and trendier merchandise. It additionally struck a take care of Target final 12 months to promote its merchandise.

Several points are hurting Tupperware, together with 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,” in response to Neil Saunders, retail analyst and managing director at GlobalData Retail.

Saunders stated Tupperware is in a “precarious position” financially as a result of it is struggling to develop gross sales, and since it is asset-light it would not have “much capacity to raise money.”

“The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge,” he stated.

Tupperware stated the entry into Target is a part of the model’s reinvention, which incorporates plans to develop the business by way of a number of retail channels and get its merchandise in entrance of youthful shoppers who’ve by no means even heard of Tupperware events.

But that has did not work up to now: Shares are down 90% over the previous 12 months. It additionally issued one other “going concern” warning final November.