Tupperware hits record low as announcement spooks investors
Tupperware products. Photo: LinkedIn/Tupperware
Tupperware tumbled nearly 49% Monday, the largest drop on record, to notch an all-time low after the company said it hired financial advisers “to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern.”
Tupperware experienced a sizzling run-up during the first year of the Covid pandemic, almost tripling in 2020, as the lockdown boosted kitchenware sales. It’s fallen on harder times since then.
In November, the company announced a going-concern about its future and reported disappointing earnings, sending shares lower. Now, with the iconic brand hiring advisers, investors have been further spooked.
Tupperware is working with Moelis & Co. and Kirkland & Ellis to explore options for its nearly $700 million in long-term debt, Bloomberg reported.
Newsletter
Daily
SA Money Daily
The biggest business, economic and market news of the day.
Sign up
The company is taking actions to improve its liquidity position, which include discussions with potential investors or financing partners, it said. And it’s looking at its real estate portfolio for opportunities to streamline the company and have more cash on hand.
Tupperware failed to file its 10-K for 2022, which likely puts it in violation of credit facility covenants. The company also has cash constraints due to higher interest costs and the timing of re-engineering actions.
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
