- An iconic American brand for more than 60 years, Tupperware (TUP) is hiring consultants to help it restructure, in a bid to avoid possible default and being delisted from the New York Stock Exchange
- On April 3, the NYSE notified the company it was no longer in compliance with the exchange, after failing to file an annual report on time
- In a filing with the U.S. Securities and Exchange Commission, the company said it currently risks defaulting
- The company has six months to get regain NYSE compliance by filing the required paperwork or face delisting from the exchange
- Tupperware Brands Corporation (NYSE:TUP) is 6.45 percent, trading at US$1.32 at 1:24 pm ET
An iconic American brand for more than 60 years, Tupperware (TUP) is hiring consultants to help it restructure, in a bid to avoid a possible default and being delisted from the New York Stock Exchange.
Headquartered in Orlando, Florida, Tupperware confirmed late last week it hired financial advisors to help guide it and improve its capital structure.
On April 3, the NYSE notified the food storage device company it was no longer in compliance with the exchange, after failing to file an annual report on time.
In a filing with the U.S. Securities and Exchange Commission, the company said it risks defaulting if all its major creditors seek to collect at the same time.
“Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position,” President and CEO Miguel Fernandez said in a statement.
“The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position.”
The company has six months to get regain NYSE compliance by filing the required paperwork. While an extension is possible, the exchange may also start delisting procedures at that time.
“Further, due to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its Credit Facility, the company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its Credit Agreement, it may not have adequate liquidity in the near term,” Tupperware said in a statement.
“As a result, the Company has concluded there is substantial doubt about its ability to continue as a going concern. This going concern status requires the company to write-down certain non-cash deferred tax assets and goodwill and other intangible assets.”
It hopes to file the amended 10-K form with the NYSE in May, but cautioned Tuesday that is far from a certainty.
Tupperware Brands Corporation (NYSE:TUP) is 6.45 percent, trading at US$1.32 at 1:24 pm ET.