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Tupperware faces bleak future with potential bankruptcy





Date Published:
Author: CML News

Lede

Tupperware's future is uncertain after a regulatory filing warned of the company's inability to continue as a going concern, causing shares to fall nearly 50%.

 

Summary

  • Tupperware warns of its inability to continue as a going concern and is working with financial advisers to find financing to stay afloat
  • The company is exploring potential layoffs and reviewing its real estate portfolio for potential money-saving efforts
  • The New York Stock Exchange warns that Tupperware's stock is in danger of being de-listed for not filing a required annual report
  • Tupperware has been struggling in recent years to maintain its relevance against rivals and attract younger customers with newer and trendier products
  • Several issues are hurting Tupperware, including a 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 is in a "precarious position" financially because it's struggling to grow sales and it doesn't have much capacity to raise money as an asset-light company
  • Shares are down 90% over the past year and the company issued another "going concern" warning last November
  • Tupperware's entry into Target was part of the brand's reinvention, 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 Tupperware parties

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