Tupperware shares plunge after warnings of possible bankruptcy

New York () — Tupperware shares fell nearly 40% in early trading on Monday after the grim warning that its future is uncertain.

In a presentation Speaking with regulators late on Friday, the packaging maker said there were “substantial doubts about the company’s ability to continue as a going concern” and that it is working with financial advisers to find financing to stay afloat.

Tupperware said it won’t have enough cash to finance its operations if it doesn’t come up with additional money. The company said it is exploring possible layoffs, and is reviewing its real estate portfolio for potential money-saving efforts.

The New York Stock Exchange also warned that Tupperware shares risk being delisted for failing to file the required annual report.

“Tupperware has embarked on a journey to turn our operations around and today marks a critical step in addressing our capital and liquidity position,” CEO Miguel Fernández said in a press release. “The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate steps to seek additional funding to address our financial position.”

The 77-year-old company has been struggling in recent years to maintain its relevance against rivals. It has tried to shed its formal image and attract younger customers with newer, more modern products. In addition, last year it reached an agreement with Target to sell its products in the department store.

According to Neil Saunders, retail analyst and managing director of GlobalData Retail, there are a number of issues that are hurting Tupperware, including a “sharp decline in the number of sales associates, a decline in consumption of household products and a brand that hasn’t yet fully connects with younger consumers.

Saunders said Tupperware is in a “precarious position” financially because it’s struggling to grow sales, and because it doesn’t have many assets, it doesn’t have “much ability to raise money.”

“The company used to be a hub of innovation with problem-solving kitchen gadgets, but it’s really lost its edge,” he said.

Tupperware said the entry into Target is part of a reinvention of the brand, which includes plans to grow the business through multiple retail channels and get its products in front of younger consumers who have never heard of it. of the Tupperware parties.

But that hasn’t worked so far: The shares have fallen 90% in the past year. It also issued another “going concern” warning in November 2022.