Tupperware, the ubiquitous food preservation company (and one-time meme stock), has warned investors that it could go out of business within a year.
In a filing with the Securities and Exchange Commission, Tupperware said it may have inadequate liquidity to fund operations.
“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 date of issuance of these financial statements,” Tupperware wrote in its 10-Q filing.
This is hardly the first time Tupperware has warned that the end may be near. A year ago it warned that its financial problems could be insurmountable, even though a recovery plan was underway. Now, however, it has warned investors that it will no longer be able to borrow from its credit line and has already entered into a debt restructuring agreement. The company’s board of directors said it was “actively engaging” with financial advisors “to explore strategic alternatives.”
In another possible wake-up call, the company delayed the filing of its annual 10-K report due to “the identification of multiple prior period misstatements and material deficiencies in internal control over financial reporting.”
Tupperware shares are down 33% year to date and have lost 45% of their value over the past 12 months.
Tupperware sales have been declining for years as competition in the plastic container industry has increased dramatically, with rivals offering products at substantially lower prices. In 2020, however, Tupperware reported its first year-over-year sales increase since 2017.
But the dire financial situation didn’t deter investors last fall. In August, stocks surged 800% in two weeks as individual investors undermined short sellers and pumped money into stocks. That demonstration, however, did not last long.