What was once a staple of kitchens across the country and one of the most iconic multi-level marketing, or MLM, companies, Tupperware may soon become a thing of the past.
Officials with the home storage container company said it may be going out of business, USA Today and other media outlets reported.
The shares of the Orlando-based company fell almost 50% on Monday after news of the potential closing, CBS News reported. Its stock is down about 70% this year.
In a regulatory filing issued last week, Tupperware said it has “substantial doubt about the company’s ability to continue as a going concern” while it works with financial advisers to find money to stay in business.
USA Today reported that the company needs to find the cash to stay in business. It is also looking at potential layoffs and reviewing its real estate portfolio to come up with funding.
“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 press release, according to CNN. “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.”
Tupperware, which was founded in 1946, has lost a number of sellers over the years, losing about 18% of its salesforce last year, USA Today reported.
Instead of being solely an MLM format selling through its iconic Tupperware parties, the company partnered with Target last year as part of its reinvention and to connect with a generation that has never heard of a Tupperware party, CNN reported.
