In April, the 77-year-old firm said it was in danger of going out of business if it could not raise new financing, being weighed down by a US$705 million debt burden and slumping sales. The news sent its stock down by nearly 50 per cent shortly afterward.
“What’s going on in the stock market with Tupperware is very different from what’s happening from Tupperware’s business fundamentals,” said Stephen Foerster, a finance professor at Western University’s Ivey Business School.Tupperware earned a reputation in the 1950s and 1960s as an innovator of kitchen solutions, when it introduced its plastic, air-tight food containers and began marketing them through “Tupperware parties” directly in consumers’ homes.
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