Tupperware warns it may go out of business

Tupperware is warning it may go out of business, just three years after the retro brand enjoyed a surprise surge from legions of pandemic shut-ins trying their hand at cooking.

The Orlando-based company said it had “substantial doubt about its ability to continue as a going concern” in a press release and securities filing.

Shares of the direct marketing company plunged 50% after the securities filing, to $1.22 a share. Its stock is down 70% this year. 

Tupperware will likely renege on some of its debt, the company said, citing in part “cash constraints caused by higher interest costs.”

It’s also considering selling some of its real estate holdings or cutting other parts of the business, which it termed “right-sizing efforts” in its press release, posted late Friday.

“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, Tupperware Brands CEO, said in the 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.”

Tupperware also warned that it faces delisting from the New York Stock Exchange because it is late in filing its standard annual report, known as a 10-K. It also said that when it does file its financial results, they will look substantially worse than the company initially reported.

The company struck a deal to sell its wares in Target last October as part of a “turnaround” plan. That same month, it renegotiated its agreements with lenders to give the company more flexibility.

Tupperware also faces a lawsuit from investors accusing the company of hiding “serious issues” in its financial filings.