Tupperware, the company that first sold airtight plastic containers to be used in households around the country in 1946, has announced its party might be over.
On April 7, the company announced in a news release that it has hired financial advisors to help improve its capital structure and remedy doubt in the company’s ability to continue functioning. The announcement comes days after an April 3 SEC filing from the New York Stock Exchange warned that Tupperware’s stock is in danger of being delisted for not filing a required annual report.
The company also said its board of directors is working with management to improve the company’s finances and attempting to secure supplemental financing, including potentially taking on investors or new financing partners.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” said Miguel Fernandez, president and chief executive officer of Tupperware brands, in the news 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.”
Tupperware also said it’s considering layoffs as well as a slew of other methods to preserve or acquire additional liquidity.
The company said it’s reviewing its real estate portfolio for property it may sell and, according to the Orlando Sentinel, it had previously moved off all its remaining land in Central Florida with deals in 2021 and 2020, also entering a sale-leaseback agreement for its corporate headquarters in November 2020.
According to its website, Tupperware has a footprint in North America, South America, Europe, Africa, the Middle East and parts of Asia. In regards to manufacturing, the company has one manufacturing hub in Hemmingway, South Carolina, but also has manufacturing plants in Belgium, Brazil, France, Greece, Japan, South Korea, Mexico, the Philippines, Portugal and South Africa.
“Due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its Credit Facility, the Company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its Credit Agreement, it may not have adequate liquidity in the near term,” reads the news release. “As a result, the Company has concluded there is substantial doubt about its ability to continue as a going concern.”
Following the announcement, Tupperware stock fell nealry 50%, with shares dropping sharply from $2.45 a share to less than $1.50 after markets opened on Monday, April 10.
The news comes years after a pandemic-assisted surge in the 77-year-old company’s popularity, with profit in late 2020 quadrupling to $34.4 million, according to Tupperware, at the time. Value also shot up to a remarkable $30 a share at the time.
Tupperware did not immediately respond to TODAY.com’s request for comment.
