New York (CNN) Tupperware Shares fell nearly 50% in midday trading Monday after a grim warning The future looks vague.
in regulation filing Late Friday, the container manufacturer said there were “significant doubts about the company’s ability to continue as a going concern,” and that it was working with financial advisors to find financing to stay afloat.
Tupperware said it would not have enough cash to fund its operations if it did not secure additional funds. The company said it is exploring potential layoffs, and is reviewing its real estate portfolio for potential efforts to save money.
The New York Stock Exchange has also warned that Tupperware stock is at risk of being delisted for failing to file the required annual report.
“Tupperware has embarked on a journey to transform our operations and today marks a critical step in addressing our capital and liquidity position,” Tupperware CEO Miguel Fernandez said in a press release. “The company is doing all it can to mitigate the effects of recent events, and we are taking immediate action to seek additional funding and address our financial situation.”
The 77-year-old company has struggled in recent years to maintain its relevance against competitors. He’s been trying Throwing her sober image Attracting younger customers with newer and trendy products. It also struck a deal with Target last year to sell its products.
There are several issues hurting Tupperware, including “a sharp decline in the number of sellers, a consumer backtracking from home products, and a brand that still doesn’t fully connect with younger consumers,” according to Neil Saunders, retail analyst and managing director at GlobalData Sale. retail.
Saunders said that Tupperware is in a “precarious position” financially because it is struggling to increase sales, and because it is asset-light it does not have “much ability to raise money”.
“The company used to be a hotbed of innovation in problem-solving kitchen gadgets, but it’s really lost its edge,” he said.
Tupperware (TUP) The entry into Target is part of a reinvention of the brand, he said, which includes plans to grow the business through multiple retail channels and get its products in front of young consumers who have never heard of Tupperware parties.
But so far it hasn’t worked: Shares are down 90% over the past year. It also issued another “continuity” warning last November.
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