Tupperware, the ubiquitous food storage company (and former meme stock), warned investors it could go bankrupt within a year.
In a filing with the Securities and Exchange Commission, Tupperware said it may not have enough liquidity to fund operations.
“The Company has concluded that there is substantial doubt about its ability to continue as a going concern for at least one year from the date of these financial statements,” Tupperware. wrote in its 10-Q statement.
This isn’t the first time Tupperware has warned that the end may be near. A year ago, he warned that his financial problems could be insurmountable despite the implementation of a turnaround plan. However, it has now warned investors that it can no longer borrow on its credit line and has already entered into an agreement to restructure its debt. The company’s board of directors said it was “actively engaging” with financial advisors “to explore strategic alternatives.”
Another possible warning sign is that the company delayed filing of annual 10-K report due to “the identification of numerous prior period misstatements and material weaknesses in internal control over financial reporting.”
Tupperware shares are down 33% year to date and have lost 45% of their value over the past 12 months.
Tupperware sales have been declining for years as competition in the plastic storage container industry has intensified and competitors have offered products at significantly lower prices. However, in 2020, Tupperware reported its first annual sales increase since 2017.
However, last fall the difficult financial situation did not discourage investors. In August, shares soared 800% in two weeks as individual investors curbed short sellers and poured money into the stock. However, this rally did not last long.