Tupperware Brands Tumbled This Week – Here’s Why

Tupperware Brands Corporation (NYSE: TUP) shares plunged nearly 50% on Monday after the company warned that it could go out of business if it doesn't secure additional financing.

Tupperware's shares closed on Thursday last week at $2.42. On Monday, they hit a low of $1.24, down 48%, while they edged 4.8% higher to $1.30 on Tuesday.

The company, which sells food storage and preparation products, said in a press release and filing that it has “substantial doubt” about its ability to continue as a going concern. Tupperware has been struggling for years as consumers have moved away from the brand, despite its efforts to attract a younger audience.

In recent years, Tupperware has been trying to reinvent itself by expanding its product line and selling its products in stores such as Target.

However, those efforts have so far failed to turn things around. Tupperware's sales have been declining for a while, and the company has been losing money. In its most recent quarter, Tupperware said it lost $28.4 million.

The company's warning on Monday has raised concerns about its future.

“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” said Miguel Fernandez, President, and Chief Executive Officer of Tupperware Brands. “The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position.”