Iconic American Company Warns it May Not Survive Beyond the Next Year

Tupperware Brands has warned in a recent SEC filing that the company may not survive beyond the next year due to insufficient liquidity to fund its operations.

This comes nearly a year after Tupperware first raised substantial doubts about its ability to continue as a going concern.

In an effort to address its challenges, Tupperware has taken several steps, including appointing a new CEO, Laurie Ann Goldman, who brings extensive experience in the consumer goods industry.

The company also engaged investment bank Moelis & Co LLC to explore strategic alternatives and reached an agreement with lenders to restructure its debt obligations.

To make matters worse the company notified the SEC on Friday that it will delay the filing of its 10K for the 2023 fiscal year, attributing the delays to “ongoing material weaknesses in internal control over financial reporting, its challenging financial condition and significant attrition resulting in resource and skill set gaps.”

While Tupperware plans to complete its due processes and file the 10K for 2023 “as promptly as possible,” the company cautioned that “there can be no assurance with respect to the timing of completion of the filing.”

The company’s recent struggles stand in contrast to its performance during the COVID-19 pandemic, when sales initially recovered as consumers spent more time cooking at home and using Tupperware products to store leftovers.

However, sales have declined in recent quarters, exacerbating the company’s financial woes.

READ NEXT: Regional Banks at Risk as Almost a Trillion Dollars of Commercial RE Loans Come Due This Year

It’s uncertain whether the formerly iconic company will be able to survive especially given the fact its products are no longer unique or stand out very much from the much cheaper competition.