Shares of Tupperware plunger 49 per cent on Monday after the company said that it is working with financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern.”
The maker of plastic containers and other kitchen products said it won’t have enough cash to fund its operations if it doesn’t secure additional money. It said that it is exploring potential layoffs, and revieing its real estate portfolio for potential money-saving efforts.
Shares of NYSE-listed Tupperware Brands Corporation have fallen sharply after the development. The stock slumped 48.76 per cent on Monday to a three-year low level of $1.24.
Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position, CEO Miguel Fernandez said in a press release.
“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.”
Concerns for Tupperware came after the New York Stock Exchange warned the company’s stock could be de-listed because it didn’t file an annual report for 2022. While Tupperware said it plans to file a report within the next 30 days, it added “there can be no assurance” it “will be filed at such time.”
In the final quarter of 2022, year-on-year sales slumped by 20 per cent to US$313.7 million. On balance, Tupperware made a loss of US$35.7 million.