Tupperware is warning it may go out of business, just three years after the retro brand enjoyed afrom legions of pandemic shut-ins trying their hand at cooking.
The Orlando-based company said it had “substantial doubt about its ability to continue as a going concern” in a press release and securities filing.
Shares of the direct marketing company plunged 50% after announcement late Friday. Tupperware’s stock was trading at about $1.28 a share Tuesday, down 70% since the start of the year.
Tupperware will likely renege on some of its debt, the company said, citing in part “cash constraints caused by higher interest costs.”
It’s also considering selling some of its real estate holdings or cutting other parts of the business, which it termed “right-sizing efforts” in its press release.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” Miguel Fernandez, Tupperware Brands CEO, said in a statement. “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.”
When it reported preliminary earnings last month, Tupperware said it had “identified misstatements” in some of its earlier financial reports and said it “did not design and maintain effective internal controls” when it comes to tax accounting.
Last Friday, Tupperware also warned that it faces delisting from the New York Stock Exchange because it is late in filing its standard annual report, known as a 10-K. It also said that, when it does file its financial results, they will look substantially worse than the company initially reported.
The company struck a deal tolast October as part of its “turnaround” plan. That same month, it renegotiated its agreements with lenders to give the company more flexibility.
Tupperware also faces a lawsuit from investors accusing the company of hiding “serious issues” in its financial filings.
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