Breaking News: Tupperware Brands in Jeopardy of Shutdown
Tupperware’s Existence Threatened by Financial Struggles
Tupperware Brands, a 77-year-old company renowned for its plastic airtight food storage containers, has warned that its survival beyond the next year is uncertain. The company stated in a filing with the US Securities and Exchange Commission (SEC) on Friday that it foresees significant challenges in maintaining adequate liquidity to fund its operations.
Financial Concerns Raised for Almost a Year
Tupperware first expressed doubt about its ability to continue as a going concern nearly a year ago. Since then, the company has taken action by appointing Laurie Ann Goldman, a seasoned consumer goods industry veteran, as its new CEO. Tupperware also enlisted the services of renowned investment bank Moelis & Co LLC to explore potential strategic alternatives and entered into an agreement with lenders to restructure its debt obligations.
Financial Reporting Challenges and Delays
Attributing the multiple delays in its annual report filings, Tupperware cited ongoing material weaknesses in internal control over financial reporting, its challenging financial condition, and significant attrition leading to resource and skill set shortages. These factors have hindered the company’s progress in completing and filing its 2022 10-K, and the filing for FY 2023 is expected to be delayed as well.
Pandemic Impact and Sales Decline
Tupperware experienced a decline in sales in recent quarters. The company initially witnessed a recovery during the COVID-19 pandemic as consumers cooked more meals at home and relied on Tupperware products to store their leftovers. However, sales have since decreased.
Market Performance
At the close of trading on Thursday, Tupperware’s shares were valued at $1.34. The company’s stock has experienced a decline of 33% this year.
