Is the Party Over for Tupperware?
Tupperware announced on April 7 that it has engaged financial advisors to help improve its capital structure and remediate its “doubts regarding its ability to continue as a growing concern.” The news sent the company’s shares plummeting 48% today, reports Reuters.
The iconic American brand’s earnings more than quadrupled in the third quarter of 2020, as lock-downs led to a surge in home cooking and leftovers. Since then, however, as people have returned to dining out, the need for food containers has ebbed, notes Reuters. Moreover, the rise of e-commerce has “dented the fortunes of companies that lean on direct selling,” writes the media outlet.
Tupperware said it won’t have enough cash to fund its operations if it doesn’t secure additional funding and is reviewing its real estate portfolio and layoffs to tide it over.
“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 CEO Miguel Fernandez in a prepared statement. “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.”