Iconic consumer-products company ’embarked on a journey’ to turn around operations
Tupperware Brands Corp. late Friday issued a going-concern warning, saying that it has hired financial advisers to help navigate its near-term difficulties.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” Chief Executive Miguel Fernandez said in a statement.
“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,” Fernandez said.
The advisers would help the company, synonym with storage containers and other kitchen products, improve its capital structure and liquidity “and remediate its doubts regarding its ability to continue as a going concern,” Tupperware TUP, said.
The consumer-products company said it is looking for additional financing and is discussing its options with potential investors or financing partners.
Tupperware is also reviewing its real-estate portfolio with an eye for potential sales or lease-back transactions, it said.
Due “to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its credit facility, the company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near term,” the company said.
Tupperware is late filing its annual report and said Friday that whenever the financial results are filed they will “differ significantly” from results announced March 1.
The company said it expects to file its 10-K with the securities regulators within the next 30 days. “Further time is needed by the company and its auditors to complete the preparation and audit of the financial statements, including the restatement of certain of its previously issued financial statements, before the Form 10-K can be filed,” it said.
Tupperware stock is down 88% in the past 12 months, compared with losses of around 9% for the S&P 500 index. SPX, +0.36% Equity markets were closed Friday in observance of Good Friday.