Tupperware seeks to lock in alternatives to bankruptcy

Bengaluru — Tupperware Brands, which has warned of a possible bankruptcy, said on Monday it has signed on investment bank Moelis & Co to help explore strategic alternatives.

It added that it has found additional misstatements in its previously issued financial statements.

Shares of the company, known for its bright-coloured plastic airtight containers, fell more than 6% to $1.02 in premarket trading.

Florida-based Tupperware in April raised doubts about its ability to continue as a going concern as it struggled to contain a slump in sales amid a surge in the usage of free restaurant to-go boxes and rising competition from cheaper food storage containers.

On Monday it said in a filing it expects a “material decline” in revenues for the first quarter ended April 1 — estimated in the range of $280m to $290m. It reported net sales of $348.1m a year earlier.

While it is not immediately clear if the year-ago revenue is comparable, the company said it is continuing its restatement of previously issued financial statements for the year ended December 31 2022.

Tupperware, which is struggling to reinvent itself and struggling with higher costs, said it has appointed Brian Fox, MD at turnaround firm Alvarez & Marsal North America, as its chief restructuring officer.

The company has also been slow to pivot to e-commerce sales, at a time when retailers and brands across the board have capitalised on shoppers’ preference to purchase items from the comfort of their homes.

The Wall Street Journal last month reported the company had brought on advisers from Moelis & Co, Kirkland & Ellis and Alvarez & Marsal.

Reuters