Tel Aviv Stock Exchange (Vecteezy photo, Flash 90/ Adam Schuldman)
The stock of the manufacturer of Tupperware plastic products fell by almost 50% this evening (Monday) in trading following a grim warning that its future looks cloudy.
In a regulatory filing late Friday, the company said there was “substantial doubt about the company’s ability to continue as a going concern” and that it was working with financial advisers to find financing to stay afloat.
Tupperware said it would not have enough cash to fund its operations if it did not secure additional money. The company said it is looking at potential layoffs, and it is reviewing its real estate portfolio for potential savings efforts.
The New York Stock Exchange also warned that the Tupperware stock is in danger of being delisted due to failure to submit a required annual report.
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“Tupperware has embarked on a journey to transform our operations and today is a critical step in addressing our capital and liquidity position,” CEO Miguel Fernandez said in a press release. “The company is doing everything it can to mitigate the effects of recent events, and we are taking immediate action to seek additional financing and take care of our financial situation.”
The 77-year-old business has struggled in recent years to maintain its relevance against its rivals. The company tried to shed its older image and attract younger customers with newer and trendier products. It also signed a deal with Target last year to sell its products.
Tupperware said the deal with Target is part of the brand’s reinvention, which includes plans to expand the business through multiple retail channels and introduce its products to younger consumers who may have never heard of them.
But it hasn’t been successful so far: shares are down 90% in the past year. It also issued another activity warning last November.
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