Tupperware’s future doesn’t look good as its shares plunged more than 50% Monday after the maker of plastic dishes said it had “grave” doubts about its ability to stay in business.
In particular, the company will face “a sharp decline in the number of sellers, a decline in consumers on household products and a brand that still does not fully connect with young consumers,” according to Neil Saunders, retail analyst and general manager of retail firm Global Data.
In a regulatory filing released late Friday, the 77-plus-year-old company said it is currently working with financial advisors to find a way to stay afloat despite “substantial doubt about the company’s ability to continue as a going concern.” CNN reported.
It didn’t take long for the company’s shares to drop 50% over the weekend, US media reported Monday.
For its part, the company is doing “everything it can” to mitigate the effects of “recent events” and improve its financial position, as well as assess potential layoffs, CEO Miguel Fernandez said in a press release.
“The company was once a hotbed of innovation in problem-solving kitchen gadgets, but it has really lost its edge,” said Neil Saunders.
In an effort to reach younger consumers—some of whom had never heard of “Tupperware limbs”—the company entered Target stores last year.
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