Tupperware products will be available at retail stores in Chicago, Illinois on April 10, 2023.
Scott Olson | getty images
tupperware brand It warned on Friday it was unsure whether its business could continue as a going concern and faced a liquidity crisis due to weak demand for its iconic food storage containers.
Founded by chemist Earl Tupper in 1946, the company's popularity exploded in the 1950s when the postwar generation of women, seeking empowerment and independence, held “Tupperware parties” in their homes to sell food storage containers.
The COVID-19 pandemic has led to an increase in sales as families stay home, cook more and produce more leftovers. Sales have declined in recent quarters as the world reopens.
In a filing Friday with the U.S. Securities and Exchange Commission, the company expressed doubts about its ability to continue as a going concern for at least a year and forecast inadequate liquidity to fund its operations.
The company reported soaring losses and higher resin costs for products, labor and logistics.
Tupperware first raised significant doubts about its ability to continue as a going concern about a year ago.
He later appointed consumer goods industry veteran Laurie Ann Goldman as CEO, hired investment bank Moelis & Co to explore strategic alternatives after distortions in past periods were discovered in financial reporting, and debt management. Restructuring was agreed upon.
The company, which had previously postponed its 2022 10K filing, also filed an NT10-K on Friday announcing it would postpone its 2023 10-K filing.
The company said it plans to complete the due process and file its 2023 10K “as quickly as possible,” but added that it is “uncertain as to when the filing will be completed.”
Tupperware blamed the significant decline on persistent material weaknesses in its internal controls over financial reporting, difficult financial conditions, and multiple delays in filing its annual reports, which resulted in resource and skill set gaps.
Earlier this year, Tupperware was forced to retain KPMG as its new independent auditor after the previous auditor declined to be reappointed. We also entered into a forbearance agreement with our lenders that reduces our minimum weekly U.S. liquidity requirements under our credit agreements to $10 million.