Leading Food Storage Brand Tupperware May Close Up Shop

One of the oldest food storage brands, Tupperware may go out of Business. In press a release on April 7, 2023 the company announced it was seeking to improve its capital structure in order to "remediate its doubts regarding its ability to continue as a going concern." as per NBC news report.

Tupperware company was founded in the 1940s by American entrepreneur Earl Tupper, and is based in Orlando, it enjoyed a short-lived resurgence in popularity during the pandemic. However, recently it hired advisers to help turn around the company after notifying securities regulators it may have to close up shop.

After notifying the regulators, Tupperware issued a going-concern notice, post a warning that it could be heading for a default if its lenders demand payment for maintaining access to the company's main line of credit.

"If such demand for repayment were to occur, the Company does not have the financial resources to repay such obligations," as per the document shared by the company. "The Company is also dependent upon its [line of credit] to fund its operations and satisfy obligations."

Following the going concern announcement, the company's share price fell to less than 2 USD; a decade ago, its shares were worth about 100 USD. It lost 28.4 million USD in its most recent quarter amid higher costs, inflationary pressures and lower sales despite more than 1 billion USD in quarterly global sales.

The company also mentioned that its exploring all options to regain its financial footing, including accessing new lines of credit, tapping new investors, selling some of its real estate and further cost-cutting.

"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, president and chief executive officer of Tupperware Brands, said in the April 7 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."