Shares of iconic food storage company Tupperware (TUP) fell more than 50% and hit a new all-time low after the company warned of a potential bankruptcy filing.
The company's stock plummeted after Tupperware issued a news release saying that it has hired financial advisors to explore options to help “remediate its doubts regarding its ability to continue as a going concern.”
In business for 77 years, Tupperware has struggled with rising competition and an outdated direct-to-consumer business model for its sealable and reusable food storage containers.
Tupperware, which is based in Orlando, Florida, earns most of its revenue from independent representatives who sell its products door-to-door in more than 70 countries around the world.
The company’s business model has been challenged by online shopping.
Tupperware has reported declining revenues in recent years and is labouring under a debt load of $705 million U.S, which is more than 10 times its current market value of $60 million U.S.
In the last 12 months, Tupperware’s share price has fallen 93% to $1.30 U.S.
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