(WHNT) — A household name for decades, the plastic-ware company known for tumbling out of your cupboard may be tumbling down itself, according to recent filings.
In a press release late last week, Tupperware announced there was “substantial doubt about its ability to continue as a going concern,” after the New York Stock Exchange (NYSE) warned the company’s stock could be de-listed.
The cautionary message from the NYSE comes after Tupperware reportedly failed to file its 2022 annual report on Form 10-K, which provides investors with a total overview of the company’s business and financial condition.
On March 16, 2023, Tupperware filed a “Notification of Late Filing,” requesting more time to complete Form 10-K due to “several items related to its accounting for income taxes and leases.”
While the company says the report might be filed in the next 30 days, there was no certainty it could meet the required deadlines.
“Significant resources” have been dedicated to finalizing Tupperware’s audited and consolidated financial statements before the report can be filed.
According to Tupperware, the NYSE warned on April 3, 2023, that the company has six months from the Form 10-K due date to regain compliance by filing the form with the Securities and Exchange Commission (SEC). After that, the NYSE has the ability to grant even more time at its discretion.
“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. “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.”
The company’s Board of Directors is said to be “actively engaged with management to improve the…capital structure and near-term liquidity.”
Tupperware explained the vast efforts amid the issue, saying:
The Company has engaged financial advisors to assist in securing supplemental financing, and is engaging in discussions with potential investors or financing partners. In addition, [Tupperware] is reviewing its real estate portfolio for property available for potential dispositions or sale-leaseback transactions, and is exploring right-sizing efforts, monetization of fixed assets, cash management, and marketing and channel optimization, to preserve or deliver additional liquidity.Douglas M. Lane, CFA of Tupperware
Founded in 1946 by chemist Earl Tupper, Tupperware has been a staple for households in nearly 70 countries, with more than 8,500 designs and utility patents for its products.
On Monday, the company’s shares fell almost 50% after the announcement.