==Tupperware (TUP) takes action to improve capital structure and liquidity position

 

Tupperware takes action to improve capital structure and liquidity position

• Co 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.
• The Company's Board of Directors is actively engaged with management to improve the Company's capital structure and near-term liquidity. The Company has engaged financial advisors to assist in securing supplemental financing, and is engaging in discussions with potential investors or financing partners. In addition, the Company is reviewing its real estate portfolio for property 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 preserve or deliver additional liquidity.
• The Company has determined that a violation of its Credit Facility covenants is probable to occur as a result of the Company's delay in filing its Annual Report on Form 10-K for the year ended December 31, 2022 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, 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. 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. Therefore, the financial results reflected in its Form 10-K, when filed, will differ significantly in these areas from the preliminary results it announced on March 1, 2023.