Legendary food storage brand Tupperware has hired consultants to help turn the company around after notifying securities regulators that they may have to close the store.
In a statement dated April 7The Orlando-based company announced that it is seeking to improve its capital structure in order to “address its doubts about its ability to continue as a going concern.”
Same day, Tupperware Issue a continuation notice After warning that it could be headed for default if lenders demanded payment in return for maintaining access to the company’s main line of credit.
The document states that “if such a demand for payment occurs, the company does not have the financial resources to pay these obligations.” The company also relies on [line of credit] To finance its operations and fulfill its obligations.
Created in the 1940s by American businessman Earl Tupper, Tupperware It enjoyed a brief resurgence in popularity during the pandemic amid lockdowns around the world.
But on Monday, the company’s share price fell below $2 after the continuation announcement; A decade ago, its shares were worth about $100.
While Tupperware still sees over $1 billion in quarterly global salesIt lost $28.4 million in its most recent quarter amid higher costs, inflationary pressures and lower sales.
Now, the company says it is exploring all options to restore its financial position, including access to new lines of credit, tapping new investors, selling some of its properties and further cutting costs.
“Tupperware has embarked on a journey to transform our operations and today marks a critical step in addressing our capital and liquidity position,” said Miguel Fernandez, President and CEO of Tupperware Brands, in an April 7 statement. “The company is doing all it can to mitigate the effects of recent events, and we are taking immediate action to seek additional funding and address our financial situation.”
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