Tupperware stock could go out of business after warning


Tayton Schwartz Jr, Reporter

Tupperware shares fell nearly 50% Monday following a bleak warning that its future is not looking great.  During a regulatory filing late Friday, the container maker said, “There’s a substantial doubt about the company’s ability to continue as a growing concern,” and that it’s working with financial advisers to find financing to stay afloat.  Tupperware would say it won’t have enough cash to keep funding its operations if it doesn’t secure any extra money for the business to stay up. Although the company is trying to explore many options and potential layoffs, it’s reviewing its real estate portfolio for potential-money saving efforts.

The New York Stock Exchange also warned that Tupperware’s stock is in danger of being unlisted for not filing a required annual report. “Tupperware has tried to embark on a journey to hopefully turn around our operations and today will make mark a critical step in addressing our capital and liquidity position,” CEO Miguel Fernandez said in a press release. “The Company is doing everything it can 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.” Although the 77-year-old business has been struggling in recent years to maintain its relevance against its rivals. They have also been trying to shed a stained image and attract younger customers with fresh and new trendier products. They even struck a huge deal with Target last year to sell its products.  Tupperware has several issues including a large sharp decline in the number of sellers, a consumer pullback and even the brand doesn’t completely connect with younger customers.

Neil Saunders, who is a retail analyst and director at Global Data Retail, recently said, “Tupperware is in a ‘precarious position’ financially because it’s struggling to grow sales, and because it’s asset-light it doesn’t have much capacity to raise money.” Tupperware said the entry into Target is part of the brand’s reinvention, which includes plans to grow through multiple retail channels and get its products in front of younger customers who have never heard of Tupperware. Even though they had many efforts to keep the company up, 90% of them have failed over the past year. It also issued another “growing concern” warning last November. Tupperware is doing everything and anything to keep this company up, perhaps it may strive and make a huge comeback, but we’ll have to wait until what happens in the future for Tupperware.