Tupperware, the iconic brand known for its durable food storage containers, has issued a warning stating “there is substantial doubt about its ability to continue as a going concern,” resulting in a sharp decline in its share prices. The company, which operates in approximately 70 countries, is also at risk of being delisted by the New York Stock Exchange.
Financial Advisors Engaged for Assistance
Tupperware has sought the help of financial advisors to secure additional financing and is in talks with potential investors and financing partners. The company is also assessing its real estate assets. Sales and profits have consistently fallen over the past few years after an initial pandemic-fueled boost.
Price Hikes and Challenges Impacting Margins
To protect its margins, Tupperware increased prices to account for higher interest rates, elevated resin and labor costs, a stronger U.S. dollar, and ongoing supply chain challenges.
Non-Compliance Notice from NYSE
The company recently received a non-compliance notice from the NYSE for failing to file its annual results with the Securities and Exchange Commission. Tupperware is now exploring various options to regain financial stability, including securing new lines of credit, attracting new investors, selling real estate assets, and implementing further cost-cutting measures.
Financial Misstatements Identified
Last month, Tupperware disclosed that it had discovered misstatements in some of its previous financial reports and acknowledged that it “did not design and maintain effective internal controls” for tax accounting. The company also warned that it may face delisting from the New York Stock Exchange due to late filing of its standard annual report.