Tupperware may go under, It warns of a possible collapse if new funding not secured

Tupperware recently warned that 'there is substantial doubt about its ability to continue as a going concern' leading to a steep fall in its share prices. The brand, which is present in over 70 countries is also in danger of being delisted by the New York Stock Exchange.

Tupperware reported that it has engaged financial consultants to assist with seeking supplemental finance, and is involved in conversations with potential investors or financing partners. It is also examining the properties in its real estate portfolio for potential options for monetization. In order to maintain or increase additional liquidity, it is also investigating right-sizing initiatives and the monetization of fixed assets.

It had a total debt of $705.4 million at the end of the year (2022).

Tupperware, famed for its airtight, long-lasting, and vibrant storage containers and bowls, had to raise prices to defend its margins from rising interest rates, labour and resin costs that were outpacing inflation, a stronger dollar, and ongoing supply chain issues.

A non-compliance notice was also issued to the company last week by the NYSE for failing to submit its yearly reports to the Securities and Exchange Commission. Investors were given access to preliminary information from last month.

The business also stated that it currently anticipates that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near term. This is due to the challenging internal and external business economics as well as the increased levels and costs of borrowings under its credit facility.