Food storage icon Tupperware could close up shop soon
Now we know why our nanays have always wanted us to take extra care of their "nice ones" aka their Tupperware.
Tupperware Brands Corporation, the company behind the food storage icon, has warned that it could go out of business after being in the industry for 77 long years.
The company announced in a press release dated April 7 that it is working with its financial advisors to "improve its capital structure and remediate its doubts regarding its ability to continue as a going concern."
"Further, due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its Credit Facility, the Company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its Credit Agreement, it may not have adequate liquidity in the near term," Tupperware wrote.
According to Tupperware's preliminary fourth quarter and full year 2022 results, the company's net sales for the year were at $1 billion, but it recorded a loss of $28.4 million that resulted from lower sales, higher costs, and inflationary pressures.
In addition, the company noted that its shares are on the verge of being delisted from the New York Stock Exchange because it failed to file its annual report at the Securities and Exchange Commission on the extended deadline of March 31, 2023.
Apart from seeking the help of its financial advisors, Tupperware then tapped potential investors or financing partners to provide them with secure supplemental financing.
This is in addition to "reviewing its real estate portfolio for property available for potential dispositions or sale-leaseback transactions" and monetizing other assets for additional liquidity.
Tupperware's president and CEO Miguel Fernandez said that "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's reusable airtight food containers have been a staple in kitchens throughout the world since the brand debuted in 1946.
Other than its website, the brand's products are distributed through door-to-door sales dubbed as "Tupperware parties." It was only in recent years that the company began opening its own stores and bringing its iconic containers to supermarkets and department stores.
Throughout its seven-decade history, the Orlando, Florida-based company distributed its products in nearly 70 countries around the world.