- Tupperware Brands (TUP), the maker of food storage containers, said in a regulatory filing that it may not be able to continue its operations.
- The company highlighted challenges related to the difficult business environment and high borrowing costs.
- Shares of Tupperware plunged almost 49% on April 10, 2023, hitting an all-time low.
Tupperware Brands (TUP) shares plunged to their all-time low as the maker of food storage containers warned that it may go out of business.
Tupperware said in a regulatory filing on Friday, April 7, that certain conditions and events "raise substantial doubt about the Company's ability to continue as a going concern."
The firm blamed "challenging internal and external business economics" combined with higher levels and costs of borrowing. It said that it was working with financial advisors in an effort to get supplemental financing and was also in talks with potential investors or financing partners.
Tupperware added that without obtaining adequate funding or changes to its loan agreements, management anticipates that it won't have enough cash to pay for its operations and satisfy its obligations. The company explained if that happens, it "may be forced to discontinue its operations entirely."
Doing Everything It Can
CEO Miguel Fernandez indicated that Tupperware is "doing everything in its power to mitigate the impact of recent events" and is "taking immediate action" to deal with its financial crunch. The company noted that among the options being considered is reducing its real estate portfolio.
Shares of Tupperware Brands cratered nearly 49% on the news.