(Reuters) – Tupperware Brand Corp’s shares recouped some lost ground to climb nearly 7% on Tuesday, a day after losing half their value as the maker of reusable plastic containers flagged doubts about its ability to continue as a going concern.
The Florida-based company said on Friday that it had engaged with financial advisers to help improve its capital structure and near-term liquidity, while was also reviewing its real-estate portfolio in a bid to preserve its liquidity.
Shares of the company slumped as much as 50% to a near three-year low of $1.21 on Monday, and ended the session down 48% with a market value of about $55 million.
The stock was trading up at $1.32 on Tuesday, still shy from its 2021 high of $38.57, when the company benefited from a surge in demand as the lockdown-induced home cooking prompted consumers to use Tupperware containers to store their leftovers.
Still, Tupperware saw a decline in sales volumes since 2022 as consumers maintained a cautious stance with their discretionary spending.
Tupperware, known for its airtight, durable and colorful storage containers and bowls, had to hike prices to protect its margins from higher interest rates and elevated costs of resin and labor, as well as a stronger U.S. dollar and lingering supply chain challenges.
The company in November had raised doubts about its ability as a going concern, citing that it was doubtful about whether it could comply with some of its debt covenants.
Founded in 1946 by chemist Earl Tupper, the company became popular for the way it sold its products – through representatives selling door-to-door – much like cosmetics company Avon.
Tupperware now counts on nearly 3 million independent representatives around the world to distribute its products in about 70 countries.
(Reporting by Granth Vanaik and Aishwarya Venugopal in Bengaluru; Editing by Sherry Jacob-Phillips)
