Tupperware on the verge of bankruptcy

Tupperware on the verge of bankruptcy?

Could this be the beginning of the end for the infamous Tupperware dishes and salon meetings that made it famous?

• Also read: Wave of terminations among Tupperware saleswomen

If you believe the plastic container giant’s latest financial figures published on Wednesday, nothing is going smoothly.

Tupperware Brands shares shed 42% of their market value on Wednesday after the release of third-quarter financial results that showed the company’s growing leverage relative to its earnings.

Tupperware Brands has $103 million at its disposal while its debt exceeds $700 million.

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The manufacturer said it was unable to honor the covenants of its loan agreement, which “raises significant doubts about the company’s ability to continue as a going concern,” Tupperware said in a statement on its financial results.

Net sales were $302.8 million compared to $376.9 million for the same period last year, a decrease of 20%.

Gross profit was $196.6 million, or 64.9% of net sales, compared to $247.9 million, or 65.8% of net sales, in the prior-year period.

Founded in 1946, Tupperware sells its products in nearly 70 countries, primarily through independent agents worldwide.