Tupperware Brands Corporation filed its quarterly report on Form 10-Q, disclosing a net loss of $64 million on $397 million of net sales for the 13 weeks ended June 27, 2020, compared to a net loss of $39 million on $475 million of net sales for the 13 weeks ended June 29, 2019.
At June 27, 2020, the Company had total assets of $1,194 million, total liabilities of $1,477 million, and $282 million in total shareholders’ deficit.
The Company said, “Pursuant to ASC 205, Presentation of Financial Statements, the Company is required to and does evaluate at each annual and interim period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. As of June 27, 2020 the Company has $501.3 million of Senior Notes that will mature on June 1, 2021, which is within one year of the date that the consolidated financial statements are issued for the second quarter ended June 27, 2020. Based on the definitions in the relevant accounting standards, management has determined that this condition raises substantial doubt about the Company’s ability to continue as a going concern. This evaluation does not consider the potential mitigating effect of management’s plans that have not been fully implemented. Management may evaluate the mitigating effect of its plans to determine if it is probable that (1) the plans will be effectively implemented within one year after the date the financial statements are issued, and (2) when implemented, the plans will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. As such, the Company’s consolidated financial statements as of June 27, 2020 have been prepared on a going concern basis. Although the Company has taken, and plans to continue to take, proactive measures to enhance its liquidity position and provide additional financial flexibility, there can be no assurance that these measures will be sufficient. The substantial doubt about the Company’s ability to continue as a going concern may affect the price of the Company’s common stock and the grade of its credit rating, may negatively impact relationships with third parties with whom the Company does business, including customers, vendors and lenders, may impact the Company’s ability to raise additional capital or implement its business plan and may impact its ability to comply going forward with covenants in the Company’s Credit Agreement.”
A copy of the Form 10-Q is available at:
Tupperware Brands Corporation manufactures and distributes a line of products, primarily through independent sales consultants. The Orlando-based Company’s portfolio of brands includes Tupperware, BeautiControl, Avroy Shlain, Nuvo, Nutrimetics, Fuller Cosmetics, and NaturCare brands.