(Bloomberg) — Tupperware tumbled as much as 43% Monday, the most since November, after the company said it hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern.”
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Tupperware experienced a sizzling run-up during the first year of the Covid pandemic, almost tripling in 2020, as the lockdown boosted kitchenware sales. It’s fallen on harder times since then. In November, the company announced a going-concern about its future and reported disappointing earnings, sending shares lower. Now, with the iconic brand hiring advisers, investors have been further spooked.
Tupperware is taking actions, also to improve its liquidity position, that include discussions with potential investors or financing partners, it said. And it’s looking at its real estate portfolio for opportunities to streamline the company and have more cash on hand.
Tupperware failed to file its 10-K for 2022, which likely puts it in violation of credit facility covenants. The company also has cash constraints due to higher interest costs and the timing of re-engineering actions. Tupperware had about $688 million of long-term debt as of September 2022.
–With assistance from Claire Boston.
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Source: https://finance.yahoo.com/news/tupperware-slumps-hiring-advisers-address-135955789.html