Food storage brand Tupperware warns it could go out of business

Legendary food storage brand Tupperware has hired advisers to help turn the company around after notifying securities regulators it would have to close up shop.

In a release dated April 7, the Orlando-based company announced it was seeking to improve its capital structure to “relieve doubts about its ability to continue as a going concern.”

The same day, Tupperware issued a notice after warning it could be headed for default if lenders demand payment to maintain access to the company’s main line of credit.

“Should such a claim for repayment arise, the company does not have the financial resources to repay such obligations,”[ads1]; the document states. “The company also depends on its [line of credit] to finance operations and fulfill obligations.”

Created in the 1940s by American entrepreneur Earl Tupper, Tupperware enjoyed a brief resurgence in popularity during the pandemic amid worldwide lockdowns.

But on Monday, the company’s share price fell below $2 after the going concern announcement; a decade ago the shares were worth around $100.

While Tupperware still sees more than $1 billion in quarterly global sales, it lost $28.4 million in the most recent quarter due to higher costs, inflationary pressures and lower sales.

Now the company says it is exploring all options to regain its financial footing, including accessing new lines of credit, tapping new investors, selling some of its real estate and further cost cutting.

“Tupperware has embarked on a journey to turn around our business and today marks a critical step in addressing our capital and liquidity position,” Miguel Fernandez, president and CEO of Tupperware Brands, said in the April 7 statement. “The company is doing everything in its power to mitigate the effects of recent events, and we are taking immediate steps to seek additional financing and address our financial position.”

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