Tupperware may be going out of business

Household brand (and your mother’s beloved skaftin) Tupperware is facing closure due to rising debts and a dip in sales.

According to the BBC, the 77-year-old US company is struggling to appeal to a younger market and its share price dropped sharply.

In a statement, Tupperware said the company’s board of directors was engaged with management to improve the company’s capital structure and near-term liquidity.

It said the company engaged financial advisers to assist in securing supplemental financing and was engaging in discussions with potential investors or financing partners.

“Tupperware has embarked on a journey to turn around our operations and today [Thursday] marks a critical step in addressing our capital and liquidity position,” chief executive Miguel Fernandez said.

“The company is doing everything in its power to mitigate the effects of recent events, and we are taking immediate action to seek additional financing and address our financial position.”

The dip could lead to the company being delisted from the New York Stock Exchange.

“Due to the challenging economics, coupled with the increased levels and cost of borrowings, the company forecasts that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near-term.

“The company has concluded there is substantial doubt about its ability to continue as a going concern.

“This going concern status requires the company to write down certain non-cash deferred tax assets and goodwill and other intangible assets.”