Food storage firm Tupperware seeks financing in bid to stay afloat

Despite a resurgence in popularity during the pandemic, sales and profits have steadily fallen.

Troubled food storage firm Tupperware seeks financing to stay afloat as threats of delisting from NYSE grow PA Media

After experiencing a resurgence during the pandemic, food storage firm Tupperware is now pursuing investors to keep it afloat and is in danger of being delisted by the New York Stock Exchange.

Shares of Tupperware Brands tumbled nearly 50% on Monday after the company said late last week that it had engaged financial advisers to help it secure financing and “remediate its doubts regarding its ability to continue as a going concern”.

Sales and profits have steadily fallen the past couple of years after the pandemic breathed new life into the Florida-based maker of food containers.

Early in March, Tupperware posted a 24 cents-per-share loss for the fourth quarter, rattling investors who were expecting a profit of 22 cents per share.

Sales, which climbed during the pandemic as people stayed home and cooked for themselves, have tumbled from nearly $500m (£402m) in the fourth quarter of 2020 to just over $300m (£241.5m) in its most recent fourth quarter.

The company last week received a non-compliance notice from the NYSE for failing to file its annual results with the Securities and Exchange Commission. Last month’s preliminary results released to investors showed it lost around $35m (£28m) in the fourth quarter.

Tupperware has six months from the filing due date to regain compliance, though the NYSE can begin the process of delisting the stock at its own discretion.

Analysts say that creditors could potentially call Tupperware on its debt, which the company is unlikely to be able to repay.

Chasen Bender, an analyst with Citi, said Tupperware’s creditors appear to be giving the company a 30-day grace period until the 10-K financial performance report is filed.

Mr Bender added that even though the company says it is working toward finalising the filing, “the path forward appears highly uncertain”.

Tupperware said it is considering selling some real estate holdings and other non-core assets to free up cash.

Tupperware, which had explosive growth in the mid 20th century, was well-known for its Tupperware Party, first held in 1948. But it sputtered in the years leading up to the pandemic.

Prior to the pandemic resurgence, Tupperware had negative sales growth for three consecutive years, according to FactSet.

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