Tupperware shares fell nearly 50% on Monday following a warning that the kitchen products company could go bankrupt. The multinational assured that it is exploring various options to save money and finance its operations.
Shares of the utensil company plunged 47% . The price per share fell to less than $1.30 after Tupperware reported late last week that the business might not continue if they do not improve their financial situation.
There is "substantial doubt about the company’s ability to continue as a going concern" the company said. It reported that it is working with financial advisors to stay afloat and indicated that the company is evaluating layoffs and reviewing its real estate portfolio in an effort to save money.
"Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position. 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 the company's CEO, Miguel Fernandez.
Tupperware stock plunges after warning it could go out of business https://t.co/ZGbCqud6bA
— L.A. Daily News (@ladailynews) April 10, 2023
Tupperware may be delisted from New York Stock Exchange
The New York Stock Exchange (NYSE) also issued a warning that the company could be delisted after failing to file the required annual report. However, the NYSE gave it six months to regain compliance with the listing standards.
In a statement, Tupperware said it expects to achieve the stock exchange requirements within the next 30 days, although it clarified that it could not guarantee it.
The fall in the last year
Tupperware' s stock price has declined 90% over the past year. Managing director at GlobalData Retail, Neil Saunders, believes one of the reasons is that the company has failed to connect with younger consumers.
There has been a "sharp decline in the number of sellers, a consumer pullback on home products, and a brand that still does not fully connect with younger consumers (...) The company used to be a hotbed of innovation with problem-solving kitchen gadgets, but it has really lost its edge," he commented.
