Tupperware’s stock dropped by nearly 50% on April 10 following a regulatory filing that stated that the company has ‘substantial doubt’ about its ability to continue as a going concern. Tupperware is working with financial advisers to find financing options to keep the company afloat. The company disclosed that it may have to lay off workers and evaluate its real estate holdings to reduce costs. The New York Stock Exchange also warned Tupperware that it could be delisted for failing to submit its necessary annual report. CEO Miguel Fernandez acknowledged the financial challenges and stated that the company is taking immediate action to seek additional financing and address its financial position.
Tupperware has been struggling to stay competitive with its rivals in recent years. The company has attempted to reinvent itself by creating newer and trendier products to attract new customers and shed its old-fashioned reputation. Last year, it reached a sales agreement with Target, but it has still been facing significant financial difficulties. Retail analyst Neil Saunders believes that Tupperware is suffering from a 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. Tupperware has been trying to expand its reach through various retail channels to attract younger consumers.
However, the company’s efforts have not been successful so far, and its shares have fallen 90% in the last year. In November, Tupperware issued a ‘going concern’ alert, indicating that it was struggling to keep the company operational. The company is attempting to obtain additional funding to continue its operations and address its financial position.
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