US food storage container maker Tupperware has warned that it may go bankrupt if it fails to raise new funding quickly.

Shares sank by almost 50% this Monday, after the 77-year-old company signaled its continued concern over serious doubts about its ability to continue operating, given that it expects to lack adequate liquidity in the near future.

In a statement, Tupperware warned that it had to renegotiate loans after having done so three times since August 2022 and that it was facing high interest rates while trying to recover the business.

According to the BBC, the brand has indicated that it is working with financial advisers to secure more money and investment, with the possibility of selling properties and cutting jobs also on the table.

The iconic brand, founded in 1946 by American chemist Earl Tupper, still employs a direct sales team - who earn a percentage on the goods they sell - as well as selling through its website. And recently, it began placing its products in the Target chain of stores in an attempt to reach a younger audience, but this has not prevented a drop in turnover, points out the BBC.

Also this Monday, the company indicated that the financial results for 2021 and 2022 were misstated due to the way taxes and rents were accounted for and warned that it risks being delisted from the New York Stock Exchange after failing to submit the annual report for the year ended December 31.

Tupperware now has six months to comply with the standards of the New York plaza.

Source: BBC