Could this be the beginning of the end for the infamous Tupperware dishes and salon get-togethers that made it famous?
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If we are to believe the latest financial results of the plastic container giant published on Wednesday, nothing is going well.
On Wednesday, the action of Tupperware Brands lost 42% of its stock market value after the publication of its financial results for the 3e quarter, which show the company’s growing debt relative to its earnings.
Tupperware Brands has $103 million available while its debt exceeds $700 million.
The manufacturer said it would not be able to meet the covenants of its credit agreement, “raising substantial doubt about the company’s ability to continue in business”, it was reported in a statement from Tupperware on its financial results.
Net sales amounted to $302.8 million, compared to $376.9 million in the same period of the previous year, which is equivalent to a decrease of 20%.
Gross profit was $196.6 million, or 64.9% of net sales, compared to $247.9 million, or 65.8% of net sales, in the prior year period.
Founded in 1946, Tupperware distributes its products in nearly 70 countries, primarily through independent representatives worldwide.