Tupperware shares fell by almost 50% on Monday because of a depressing warning that claimed its future looked terrible. In a regulatory filing late Friday, the company said there’s “substantial doubt about the company’s ability to continue as a going concern,” but confirmed that it’s working with financial advisers to find investors that can keep the business stay afloat.
Without the extra boost Tupperware has said it won’t have enough cash to keep its operations running. The company also admitted that it is exploring potential layoffs, and reviewing its real estate portfolio to save as much as possible.
The New York Stock Exchange has also stated that Tupperware’s stock may soon be delisted for not filing 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 said in a press release.
He also said, “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.”
Tupperware has been working for more than seven decades but in the past few years, it has been going through a rough patch and has been struggling in recent times to maintain its relevance against rivals.
It has been attempting to attract younger customers with newer and more in vogue products. One way it is doing that is by teaming up with Target to get its product closer to the younger generation.
Neil Saunders, retail analyst and managing director at GlobalData Retail said that some of the issues affecting Tupperware, includes “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 Saunders, Tupperware is in trouble financially because it’s having a hard time growing sales, and because it barely has any ability to raise money.