US manufacturer of food storage containers, Tupperware has warned that it could go bust unless it can quickly raise new financing.
Tupperware’s share price dropped by nearly 50% on April 10 after the business said there was “substantial doubt about its ability to continue as a going concern.”
The firm became well-known in the 1950s and 1960s when people held “Tupperware parties” in their homes to sell plastic containers for food storage. Tupperware has been attempting to reposition itself to a younger audience. It recently started selling its products in US retail chain Target in an attempt to entice younger shoppers. It has also expanded its range into cooking products, such as a grill that works in a microwave. However, it has failed to stop a slide in its sales.
In a statement, Tupperware said that its shares were in danger of being delisted from the New York Stock Exchange because it had not yet filed its annual report. It also warned that it had to renegotiate its loans after already amending its loan agreements three times since August 2022. Tupperware said it was struggling with higher interest costs on its borrowings while it attempts to turn the business around.
The business said it “currently forecasts that it may not have adequate liquidity in the near term”, adding that it “has therefore concluded that there is substantial doubt about its ability to continue as a going concern.” In addition, Tupperware said that its financial results for 2021 and 2022 as well its interim figures in 2021 and the first three months of 2022 had been “misstated” due to how the firm accounted for taxes and leases. The business said it was working with financial advisers to secure more money and investment. It is also examining whether it can sell property and cut jobs.