Tupperware’s future looks tough as its shares fell more than 50% on Monday after the plastic dish maker said it had “substantial” doubts about its ability to continue in business.
In particular, the company would face “a sharp drop in the number of sellers, a decline in consumers on home products and a brand that still does not fully connect with young consumers”, according to Neil Saunders, retail analyst. and managing director of retail for Global Data.
In a regulatory filing released late Friday, the 77-plus-year-old company said it was currently working with financial advisers to find a way to stay afloat despite “substantial doubt about the company’s ability to continue as a going concern.” ,” CNN reported.
It did not take more for the shares of the company to fall by 50% during the weekend, according to what the American media reported on Monday.
For its part, the company is doing “everything in its power” to mitigate the impacts of “recent events” and improve its financial situation, also weighing possible layoffs, said CEO Miguel Fernandez in a press release.
“The company was once a hotbed of innovation with kitchen gadgets to solve problems, but it’s really lost its edge,” said Neil Saunders.
In an effort to reach younger consumers – some of whom have never heard of “Tupperware parties” – the company entered Target stores last year.