In a regulatory filing late Friday, the container maker stated there’s “substantial doubt in regards to the firm’s potential to proceed as a going concern,” and that it’s working with monetary advisers to search out financing to remain afloat.
Tupperware stated it gained’t have sufficient money to fund its operations if it doesn’t safe extra cash. The corporate stated it’s exploring potential layoffs, and it’s reviewing its actual property portfolio for potential money-saving efforts.
The New York Inventory Alternate additionally warned that Tupperware’s inventory is at risk of being de-listed for not submitting a required annual report.
“Tupperware has launched into a journey to show round our operations and right now marks a important step in addressing our capital and liquidity place,” CEO Miguel Fernandez stated in a press launch. “The corporate is doing the whole lot in its energy to mitigate the impacts of current occasions, and we’re taking speedy motion to hunt extra financing and tackle our monetary place.”
The 77-year-old enterprise has been struggling lately to take care of its relevance towards rivals. It has been making an attempt to shed its staid image and entice youthful prospects with newer and trendier merchandise. It additionally struck a take care of Goal final 12 months to promote its merchandise.
A number of points are hurting Tupperware, together with a “sharp decline within the variety of sellers, a shopper pullback on dwelling merchandise, and a model that also doesn’t totally join with youthful shoppers,” in response to Neil Saunders, retail analyst and managing director at GlobalData Retail.
Saunders stated Tupperware is in a “precarious place” financially as a result of it’s struggling to develop gross sales, and since it’s “asset-light it doesn’t have “a lot capability to boost cash.”
“The corporate was once a hotbed of innovation with problem-solving kitchen devices, nevertheless it has actually misplaced its edge,” he stated.
(TUP) stated the entry into Goal is a part of the model’s reinvention, which incorporates plans to develop the enterprise via a number of retail channels and get its merchandise in entrance of youthful shoppers who’ve by no means even heard of Tupperware
However that has didn’t work to this point: Shares are down 90% over the previous 12 months. It additionally issued one other “going concern” warning final November.