Tupperware Brands Corporation announced last week that it is taking steps to “remediate its doubts regarding its ability to continue as a going concern.”
According to a press release, the decades-old company engaged financial advisors to help improve its financial structure, secure supplemental financing and more. It is also reviewing its real estate portfolio.
Since it was founded in 1946, the company has been selling its signature household-name containers. These containers “created the modern food storage category that revolutionized the way the world stores, serves and prepares food,” said the company.
Today, Tupperware has more than 8,500 patents and the company aims to offer alternatives to single-use items. Its products are sold in nearly 70 countries.
However, it is expecting some financial challenges. Last month, the company reported that 2022 net sales were down 18% year-over-year.
“Net sales in South America increased 10% in constant currency, with stable performance in Brazil augmented by strong growth elsewhere in the region, particularly in Argentina,” said the company. “Outside of South America, net sales declined in the double digits, impacted by COVID-related lockdowns, particularly in China, and declining consumer sentiment, predominately in Europe. In North America, actions taken to improve the economics of those markets adversely impacted the top line.”
Earlier this month, Tupperware received a notice from the New York Stock Exchange that it was not in compliance with a section of the Listed Company Manual related to a delayed filing.
“The Company has determined that a violation of its Credit Facility covenants is probable to occur as a result of the Company’s delay in filing its Annual Report on Form 10-K for the year ended December 31, 2022… as well as cash constraints caused by higher interest costs and timing of re-engineering actions,” the press release explained.
It also said that due to internal and external economic factors, Tupperware expects that it may not have “adequate liquidity in the near term.”
In the NYSE notice, Tupperware was warned that, if it fails to file “within the six-month period, the NYSE may grant, at its sole discretion, an extension of up to six additional months,” but that it may “commence delisting proceedings at any time if it deems that circumstances warrant.”
As of Friday, Tupperware said it expected to file its Form 10-K within the following 30-day period.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” said Miguel Fernandez, president and Chief Executive Officer of Tupperware Brands, Friday. “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.”
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