As the stock price of the firm famed for its kitchen and storage containers continues to decline, Tupperware issued a warning that it might go out of business.
Tupperware, which was founded in 1946, stated in a regulatory statement last Friday that there is “serious doubt” about the firm’s capacity to continue as a going concern and that it has consulted with financial experts to get financing to keep the company operating.
As a result of Tupperware failing to submit an annual report for 2022, the New York Stock Exchange issued a warning that the stock of the business risked being delisted. Tupperware stated that it intends to submit a report within the following 30 days, but noted that “there can be no promise” that it “will be submitted at such time.”
Tupperware is looking for more funding
Tupperware stated that it is examining a number of business-related factors, including its financial management, real estate portfolio for available property, and potential layoffs.
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Miguel Fernandez, president and CEO of Tupperware Brands, stated in a statement that “Tupperware has started a path to turn around our operations and today marks a crucial step in addressing our capital and liquidity position.” The company is making every effort to lessen the effects of the recent events, and we are moving quickly to seek out additional funding and take care of our financial position.
Tupperware continued, “It may not have adequate liquidity in the short term if it is unable to obtain adequate capital resources or changes to its Credit Agreement.”
Tupperware reported its 2022 net sales in March at $1.3 billion, an 18% drop from the previous year. The company attributed the loss to to weaker sales and operational margins.
According to managing director at GlobalData Retail and retail analyst Neil Saunders, the brand hasn’t been able to completely connect with younger consumers.
Saunders claimed that the company had lost its competitive edge. “The company used to be a hub of invention with problem-solving kitchen gadgets,” he added.
Investors are suing Tupperware for making false representations in its 2020 report and failing to “disclose its major flaws with internal controls.”