Beloved Household Stock Could Be Dangerously Close to Going Out of Business

For this famous purveyor of plastic, the future isn’t so fantastic.

Tupperware  (TUP) – Get Free Report stock is down 45% in Monday trading, amid statements by company executives that indicate the plastic party is just about over for TUP.

The company’s share price was already down 69.4% on a year-to-date basis and 93.4% on a year-to-year basis.

Don’t Miss: Tupperware Plunges as Earnings Badly Miss Estimates

The April 7 SEC filing statement from Tupperware execs isn’t doing shareholders any more favors.

“The Company has determined that a violation of its Credit Agreement covenants is probable to occur as a result of forecasted non-compliance with financial covenants and the Company’s delay in filing its Form 10-K, as well as cash constraints caused by higher interest costs and timing of re-engineering actions,” the statement warned. “Further, due to the challenging internal and external business economics causing volatility in the Company’s earnings, coupled with the increased levels and cost of borrowings under its Credit Agreement, the Company currently forecasts that it may not have adequate liquidity in the near term. The Company has therefore concluded that there is substantial doubt about its ability to continue as a going concern.”

The Orlando, Fla., consumer container and kitchen goods provider has failed to resonate with younger consumers, who increasingly view the company’s products as being stale and stuck in a 1950s time warp.

Tupperware has lost 18% of its sales force in the past year, and now it’s hired financial advisers to help with company financing. Tupperware also said it’s looking to sell real estate to bolster much-needed liquidity. Additionally, a much-touted partnership with Target  (TGT) – Get Free Report to sell its plastic products hasn’t borne much fruit, as store sales comprised just 1% of total company sales in the fourth quarter.

“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” CEO Miguel Fernandez said in a new press release. “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.”

In a candid statement, Fernandez also pointed his finger at company management for its troubles.

“The global macro environment continues to be challenging, and we are not executing internally at a level or consistency that we believe we should be,” he said on a recent conference call

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