By Ntombi Mhlongo
Having started operating over 70 years ago and empowering business people all over the world, Tupperware has announced that there is substantial doubt that it can continue functioning.
The company, which first sold airtight plastic containers to be used in households in 1946, has announced its party might be over.
I feel as if I should rush out and buy more Tupperware to help save them from going bust. I ❤️Tupperware.#Tupperware
— Queen Skelmpie, Prince & Princess Skelmpie (@Skelmpie22) April 11, 2023
Iconic Tupperware warns it could go out of busines https://t.co/Gx8MNS8kah via @MailOnline
The Times Newspaper in the United Kingdom reported that on April 7, the management of Tupperware announced in a news release that it has hired financial advisors to help improve its capital structure and remedy doubt in the company’s ability to continue functioning.
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It was reported that the announcement comes days after an April 3 SEC filing from the New York Stock Exchange warned that Tupperware’s stock is in danger of being delisted for not filing a required annual report.
The company also said its Board of directors is working with management to improve the company’s finances and attempting to secure supplemental financing, including potentially taking on investors or new financing partners.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” Miguel Fernandez, President, and Chief Executive Officer of Tupperware brands was quoted in the press release.
He mentioned that 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.”
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Tupperware also said it’s considering layoffs as well as a slew of other methods to preserve or acquire additional liquidity. The company said it is reviewing its real estate portfolio for property it may sell.
According to its website, Tupperware has a footprint in North America, South America, Europe, Africa, the Middle East, and parts of Asia. In regards to manufacturing, the company has one manufacturing hub in Hemmingway, South Carolina, but also has manufacturing plants in Belgium, Brazil, France, Greece, Japan, South Korea, Mexico, the Philippines, Portugal, and South Africa.
Hearing #Tupperware is in a spot of bother.
— Jason Ford (@TheFordFactor) April 11, 2023
They sure knew how to throw a party pic.twitter.com/7wSiIgGTZf
“Due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its Credit Facility, the company currently forecasts 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,” reads the news release.