The iconic US brand, Tupperware is on the brink of collapse. Its shares plunged 49 per cent on Monday – the largest drop on record to notch an all-time low.
The maker of plastic containers and kitchenware that has been around for 77 years saw its share price fall to US$1.24 (RM5.47), hitting a three-year low. The brand warned of acute cash shortages.
“The company is doing everything in its power to mitigate the impacts of recent events,” Tupperware boss Miguel Fernandez said in a company statement.
Tupperware Brands Corporation said last Friday that it had hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern”.
He further said the company was seeking potential investors or financing partners to stay in business, and that it would not have enough cash to fund operations if it failed to do so. The company was also considering cost-cutting measures, including slashing jobs and reviewing its real estate portfolio.
In March 2022, the company reported a loss from continuing operations of US$28.4 million (RM125.2 million), although this narrowed from US$152.2 million (RM671.4 million) in the previous year. The company also failed to submit its annual report on time, which could lead to a breach of credit agreements.
Tupperware was founded in 1946 and has since revolutionised the world of housewares with its bowls, dishes and kitchen containers – becoming a symbol of post-World War II prosperity.
The brand made it an icon during the 1950s and 1960s consumer revolution, where its air-tight and water-tight containers took the market by storm. The brand distributes its products in nearly 70 countries, mainly through independent representatives around the world.
Source here
Discussion about this post