— Tupperware Brands warned Friday it is not confident its business can continue as a going concern and is facing a liquidity crisis due to falling demand for its iconic food storage containers.
Founded in 1946 by chemist Earl Tupper, the company’s popularity exploded in the 1950s as women of the postwar generation hosted “Tupperware (NYSE:) parties” in their homes to sell food storage containers in a bid for empowerment and independence. .
The COVID-19 pandemic has led to increased sales among families sheltering at home, cooking more and producing a lot of leftovers. Sales have declined in recent quarters as the world has reopened.
In a filing with the U.S. Securities and Exchange Commission on Friday, the company noted doubts about its ability to continue as a going concern for at least a year and forecast insufficient liquidity to fund operations.
The company reported mounting losses and also faced higher costs for resins for its products, labor and logistics.
Tupperware first expressed serious doubts about its ability to continue as a going concern nearly a year ago.
Since then, it has named consumer products industry veteran Laurie Ann Goldman as CEO, hired investment bank Moelis (NYSE:) & Co. to explore strategic alternatives after discovering misstatements in prior period financial reporting, and entered into an agreement to restructure its debt.
The company, which previously delayed its 2022 10K filing, also filed an NT10-K on Friday to notify that it will delay its 2023 10-K filing.
The company plans to complete the proper procedures and submit the 2023 10K application “as soon as possible,” the company said, but added that “there can be no guarantees regarding the timing of completion of the filing.”
Tupperware blamed persistent material weaknesses in its internal controls over financial reporting, its difficult financial position and significant staff reductions resulting in resource and skills shortages for numerous delays in filing annual reports.
Earlier this year, Tupperware was forced to retain KPMG as its new independent auditor after the former auditor declined reappointment. It also entered into a forbearance agreement with its lenders that reduces the weekly minimum US liquidity requirements under the credit agreement to $10 million.