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.