Only three years after the retro brand had a surprise boost in popularity as a result of thousands of pandemic shut-ins trying their hand at cooking, Tupperware has issued a warning that the company may go out of business.
In a press release and a securities filing, the company with its headquarters in Orlando stated that it had “serious uncertainty about its capacity to continue as a going concern.”
Tupperware TUP -48.76% Shares Were Rapidly Declining
The registration of the securities prompted a sudden decline of fifty percent in the price of the company’s shares, which were last seen at a price of one dollar and twenty-two cents each.
The value of its stock has fallen by 70% since the beginning of this year.
Tupperware Inc. filed a going-concern warning on Monday, and the firm stated that it was working with financial consultants to enhance the capital structure and better position the business.
As a result, shares of Tupperware Inc. TUP –48.76% were plunging dramatically after the announcement.
According to the statement made by the company, financial restrictions caused by rising interest payments are one of the reasons why Tupperware is likely going to default on some of its debt.
It may also decide to sell some of its real estate holdings or reduce other aspects of the firm, which it referred to as “right-sizing activities” in a news release that was published late on Friday.
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Delayed Annual Report Filing
Tupperware has also issued a warning that it may be delisted from the New York Stock Exchange (NYSE) due to the fact that it has been late in publishing its normal annual report, which is referred to as a 10-K.
In addition to this, it stated that when it finally files its financial reports, it will be significantly worse than the business previously reported it would be.
In October 2016, the business made an agreement to begin selling its items in Target as part of a turnaround strategy.
In the same month, they renegotiated their agreements with their lenders in order to provide the company more freedom.
Tupperware is also being sued by investors who claim the corporation hid severe flaws in its financial disclosures. This case has been filed against the company.
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