Tupperware warns it could go out of business soon

Tupperware, which was once a staple in American kitchens, is warning that it might not have enough cash to survive in the near term.

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The company, in a press release, said “there is substantial doubt about its ability to continue as a going concern” and it has engaged financial advisors to help it raise funds.

“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 Miguel Fernandez, president and chief executive officer of Tupperware Brands.

Tupperware, whose stock is down 68% year to date, is facing a possible delisting, it said, for failing to file an annual report. The company said it expects to file that within the next 30 days, but hedged that, adding “there can be no assurance that the Form 10-K will be filed at such time.”

Sales have been declining at Tupperware for years, as competition in the plastic storage container business has increased dramatically, with competitors offering products at substantially lower prices. In 2020, however, Tupperware reported its first year-over-year sales increase since 2017.

Tupperware says it is working to improve its capital structure and near-term liquidity—and has brought on advisors to help it look for investors or potential partners. It’s also reviewing its real estate portfolio for potential cash injections.

“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,” said Fernandez.

This story was originally featured on Fortune.com

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Source: https://finance.yahoo.com/news/tupperware-warns-could-business-soon-153449375.html