Tupperware Warns of Potential Bankruptcy as it Struggles to Stay Afloat Amid the Pandemic

Tupperware, the iconic kitchenware brand, is warning of potential bankruptcy as it struggles to stay afloat amid the pandemic. In a regulatory filing late Friday, the Orlando-based company said there’s “substantial doubt about the company’s ability to continue as a going concern.”

The company is working with financial advisers to find financing to stay afloat, and is exploring potential layoffs, as well as reviewing its real estate portfolio for potential money-saving efforts. It’s also considering selling some of its real estate holdings or cutting other parts of the business, which it termed “right-sizing efforts” in its press release.

Tupperware said it won’t have enough cash to fund its operations if it doesn’t secure additional money, and it may have to renege on some of its debt, citing in part “cash constraints caused by higher interest costs.”

Shares of the direct marketing company plunged 50% after the securities filing, to $1.22 a share. The company’s struggles come just three years after the retro brand enjoyed a surprise surge from legions of pandemic shut-ins trying their hand at cooking.

Tupperware is now in a race against time to secure additional financing and avoid bankruptcy. The company said it is “committed to taking the necessary steps to ensure the long-term success of the business.”