Tupperware lost nearly half its market value Monday after the company said in a regulatory filing it’s on the verge of going out of business.
Tupperware’s shares plunged by 49% on the news.
The container and kitchen gadget maker said there’s “substantial doubt about the company’s ability to continue as a going concern” because of a lack of funds.
It said it’s now scrambling to secure additional cash (if possible), and is exploring cost-cutting moves such as layoffs and selling real estate assets.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” CEO Miguel Fernandez said in a cup-is-half-full statement.
“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,” he said.
Tupperware shares have plummeted by 90% over the last year as the company struggles to be relevant to younger consumers.
Many such folk apparently view Tupperware as old hat compared to cheaper or trendier products available.
The company struck a deal with Target last year to sell its goods via the big-box retailer, but that wasn’t enough to turn things around.
At this point, it’s unclear how a business under this much financial pressure would find investors willing to hand over some cash.
Like Amway and Fuller brushes, Tupperware is a product of a bygone age.
Finding a sense of cool in the current retail environment is no easy task. If Tupperware can pull it off, more than a few other old-school brands will be taking notes.