Actions of the renowned company Tupperware collapsed this Monday 10 almost 50% causing great uncertainty about its future.
The packaging maker said in a presentation last Friday that there are “substantial doubt about the company’s ability to continue as a going concern”. He also assured that he is working with financial advisers to find financing to consolidate a fleet.
From the company they remarked that they won’t have enough money to finance their operations if they don’t get additional money. In fact, the possibility of laying off part of its workforce is being explored, while its real estate portfolio is being reviewed for potential money-saving efforts.
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“Tupperware has embarked on a journey to turn our operations around and today marks a critical step in addressing our capital and liquidity position,” CEO, miguel fernandezin a press release, according to information from CNN.
“The company is doing everything in its power to reduce the impacts of recent eventsand we are taking immediate steps to seek additional funding to address our financial position.”
According to what has been reported, the 77-year-old company has been struggling in recent years to maintain its relevance against its rivals. Even try to change your formal image to attract younger customers. Along these lines, last year it reached an agreement with Target to sell its products in its stores.
Currently, Tupperware is including more “eco-friendly” materials such as glass and stainless steel in its range of products and is making some from plastic waste that would otherwise have ended up in the trash.
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Fernández also argued that Tupperware products help reduce food waste by storing storage for leftovers. However, the strategy does not seem to have worked so far, considering that shares have already fallen 90% in the past year.
The company’s decades-long market dominance is being threatened by competition from other popular brands such as Rubbermaid, Glad, Pyrex and Oxo.
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