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Tupperware warns it could go out of business amid financial turmoil

Tupperware warns it could go out of business amid financial turmoil
Posted at 12:59 PM, Apr 11, 2023
and last updated 2023-04-11 17:56:08-04

Tupperware parties may soon be a thing of the past. 

The company recently announced that it is seeking the assistance of financial advisers to improve its capital structure amid doubts that it can stay in business. 

"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," said Miguel Fernandez, president and CEO of Tupperware Brands.

The company was created in 1946. The original line of Tupperware included plastic containers with tight seals. 

SEE MORE: Tuesday Morning to close more than 250 stores after bankruptcy filing

According to the company, the first designs didn't sell well in stores. Soon after, Tupperware Brands began recruiting people to sell the products out of their homes. Women spearheaded the effort, allowing them to earn an income in an era when many were staying home. In the decades to follow, Tupperware became a staple in kitchens across the country. 

However, amid a changing landscape of household goods, Tupperware's yearly revenue has continued to fall. In November, Tupperware reported a net sales of $302.8 million, a decrease of 20% from the same time in the year prior. 

Tupperware's stock prices have also tumbled over the last year. In 2013, its stock price reached $97 a share. On Tuesday, shares were selling for $1.26. 

In a filing with the Securities and exchange commission, Tupperware said it may be forced to "discontinue its operations entirely" if it doesn't obtain adequate capital resources or get amendments to its current credit agreement.