NOVEMBER 9, 2024 — CLOSING HEADQUARTERS
Tupperware Brands Corp. will permanently close its Orlando headquarters and lay off 145 employees effective December 31, 2024.
The company filed for Chapter 11 bankruptcy on September 17, 2024. Tupperware is finalizing the sale of its assets to its lenders which may preserve the iconic company.
JUNE 20, 2024 — COMPANY TO SHUT DOWN LAST U.S. FACTORY
Tupperware is closing its only manufacturing plant in the U.S. on January 14, 202. The closure will impact 148 employees. The fate of the company is in the hands of its creditors.
It appears that the shutdown of the Hemingway, South Carolina facility is scheduled between September 28 through January 14, 2025.
APRIL 27, 2023 — Original post…
Kissimmee, Florida-based Tupperware Brands, the iconic manufacturer of plastic food storage and kitchenware, announced it has engaged financial advisors to help improve its capital structure and remediate its doubts regarding its ability to continue as a going concern.
They have also issued a warning notice that suggests the company is facing serious financial headwinds and may not be able to continue as a going business unless the debt is restructured or the company is merged or acquired.
According to a statement filed with the Securities and Exchange Commission...
Substantial Doubt Regarding the Company’s Ability to Continue as a Going Concern
In accordance with Accounting Standards Codification (“ASC”) Topic 205-40, Going Concern, the Company evaluates whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern.
This evaluation includes considerations related to financial and other covenants contained in the Company’s Credit Agreement as well as the Company’s forecasted liquidity.
As further detailed below, the Company has concluded that there is substantial doubt about its ability to continue as a going concern for at least one year from the expected issuance date of its Form 10-K financial statements. Accordingly, management also expects that the report of the Independent Registered Public Accounting Firm that will accompany the audited consolidated financial statements for the year ended December 31, 2022 will contain an explanatory paragraph expressing substantial doubt about the Company’s ability to continue as a going concern.
The Company has determined that a violation of its Credit Agreement covenants is probable to occur as a result of forecasted non-compliance with financial covenants and the Company’s delay in filing its Form 10-K, as well as cash constraints caused by higher interest costs and timing of re-engineering actions. Further, due to the challenging internal and external business economics causing volatility in the Company’s earnings, coupled with the increased levels and cost of borrowings under its Credit Agreement, the Company currently forecasts that it may not have adequate liquidity in the near term.
The Company has therefore concluded that there is substantial doubt about its ability to continue as a going concern.
In addition, the Company is reviewing its real property portfolio for real estate available for potential dispositions or sale-leaseback transactions and is exploring right-sizing efforts, monetization of fixed assets, cash management, and marketing and channel optimization, to deliver additional liquidity within this calendar year; however, the timing, amount and ability to effect such dispositions is uncertain.
As the afore-mentioned actions are conditional upon the execution of agreements with new or existing investors or the execution of sales agreements with third parties, which are considered outside of the Company’s control, there is no assurance of the timing or outcome of these actions, and as a result, they are not considered probable of occurring until such time as they are completed.
If the Company is unable to obtain adequate capital resources or amendments to its Credit Agreement, management anticipates that it will have inadequate liquidity to fund its operations and satisfy its obligations as currently anticipated in the near term pursuant to its current business plan. This would require management to modify its operations and reduce spending to a sustainable level by, among other things, delaying, scaling back, or eliminating some or all of the Company’s ongoing or planned investments in corporate infrastructure, business development, sales, and marketing, research and development and other activities, which would have a material adverse effect on the Company’s operations, or it may be forced to discontinue its operations entirely.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
