American company Tupperware increased by more than 30% in the stock market this Thursday and is already racking up three stock market sessions in the green after last Monday’s more than 48% drop after admitting there were “substantial doubts” about its ability to continue due to its financial condition.
Specifically, Tupperware shares rose 4.84% on Tuesday, 1.54% on Wednesday, and were already up more than 30.6% this Thursday. That left it at around $1.72 (€1.55), up $0.48 (€0.43) on Monday, when the fallout from its announcement hit the headlines. Nevertheless, The price is still 28.9% lower this Thursday what the company recorded last week.
The company informed last Friday Hiring financial advisors to access additional financing from new investors. In addition, the company is reviewing its property portfolio for properties available for potential disposition or sale-leaseback transactions.
“Tupperware is doing everything it can to mitigate the impact of recent events, and we are taking immediate steps to seek additional financing and address our financial situation,” said Miguel Fernandez, the company’s president and CEO.
Given the internal and external economic challenges facing the business, as well as higher levels and costs of borrowing with its credit facilities, the company currently expects that: may not have adequate liquidity in the short term. Its products have been affected by repeated shutdowns in China due to its “covid-zero” policy, accumulated debt, lack of innovation and declining sales, not knowing how to reach the young public. It has also been affected by rising energy costs and some commodities, such as plastic.
Tupperware accumulates 77 years of history and he revolutionized food storage and transportation, inspired by the design of airtight lids on paint cans that prevented their contents from drying out. It was chemist Earl Tupper who designed the product and founded the company, which is now seeking funding to ensure its viability. Tupperware’s situation is so delicate that even its shares may be delisted from the New York Stock Exchange to delay the filing of its annual report.