Tupperware warns it could go bust without emergency funding
Tupperware, the 77-year-old company famed for its airtight food containers, has warned it could go bust if it cannot raise emergency funds to stay afloat.
Shares in the US company, which became famous in the 1950s and 1960s when agents held “Tupperware parties” to sell the plastic containers to friends and families, crashed almost 50% this week after a warning to investors that there was “substantial doubt about the company’s ability to continue as a going concern”.
“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 its chief executive, Miguel Fernandez. “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.”
The company, founded by chemist Earl Tupper in Massachusetts in 1946, has seen its shares drop by 95% over the past 12 months as it struggles to match more innovative storage competitors who promote their products to younger people on TikTok and Instagram.
Tupperware said it would not have enough cash to fund its operations if it was unable to secure additional funding in coming days. The company said it was considering making staff redundant and selling some of its real-estate portfolio to try to save money.
It said it “currently forecasts that it may not have adequate liquidity in the near term” and “has therefore concluded that there is substantial doubt about its ability to continue as a going concern”.
It is the second time in less than six months that Tupperware has issued a “going concern” warning.
The New York stock exchange also warned Tupperware was in danger of being delisted
Read more on theguardian.com
