Tupperware's Tipping Point: Execs Race To Secure Financing Amid Looming Financial Crisis

Tupperware Brands Corporation TUP is down 50% since Monday morning.

The stock tanked at the launch of Monday's trading session as investors reacted to a Friday evening communication which said the company had engaged financial advisers to help alleviate a lack of capital needed to stay afloat.

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In a recent SEC filing, the household brand said that "there is substantial doubt about its ability to continue as a going concern," and is looking to raise capital in order to continue operations.

Tupperware's stock price has lost all the gains it had harvested during the post-pandemic bull run that took it to a peak of over $37 in January 2021. Shares are worth $1.31 at the time of publication, having lost around 96% of their value since the pandemic high.

The company saw sales figures rise sharply during the pandemic, as consumers were faced with the need to preserve home cooked food during lockdowns.

Last month, DA Davidson cut the company's price target by 33%. Tupperware had 20% less sales in the fourth quarter of 2022 as compared to the same quarter of 2021. Gross profit fell 49% in that quarter.

By the end of last year, Tupperware had $120 million of cash in the bank against $705 million in total debt.

A recent failure to file its 10-K form with the SEC, detailing its annual financial results, adds extra uncertainty to the instability of the company's operations and has granted it a non-compliance notice from the NYSE, who now has the legal power to delist the stock.

CEO Miguel Fernandez said that the company is doing everything in its power to mitigate the impact of recent events.

"We are taking immediate action to seek additional financing and address our financial position," the chief executive said.

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Photo by charlesdeluvio on Unsplash.