Tupperware Brands teeters on the brink of bankruptcy after years of declining sales and internal control issues

Tupperware Brands, a company that has been in operation for 77 years, may not survive another year due to inadequate liquidity to fund operations as stated in a filing with the SEC on Friday. The company first raised concerns about its ability to continue as a going concern nearly a year ago.

Since then, Tupperware has made significant changes in an attempt to secure its future. The company appointed Laurie Ann Goldman, a veteran in the consumer goods industry, as its new CEO. They also hired investment bank Moelis & Co LLC to explore strategic alternatives and reached an agreement with lenders to restructure its debt obligations.

Despite these efforts, Tupperware has forecasted inadequate liquidity to fund operations according to Getty Images. The company, which previously delayed its 10K filing for 2022, also announced a further delay in filing the 10-K for FY 2023. This is due to ongoing material weaknesses in internal control over financial reporting, challenging financial conditions, and significant attrition causing resource and skill set gaps that have led to multiple delays in annual report filings.

Sales have been declining in recent quarters following a boost during the COVID-19 pandemic when consumers cooked at home more and invested in Tupperware products to store their leftovers. Earlier this year, Tupperware had to retain KPMG LLP as its new independent auditor after the former declined re-appointment. Shares of Tupperware closed at $1.34 on Thursday and have fallen by 33% this year.