Tupperware Stock Crashes, Company May Shut Down
Iconic kitchen brand Tupperware could wind up operations anytime as the company tries to resolve a liquidity crunch, sending shares crashing.
Tupperware 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,” according to an April 3 regulatory filing with the U.S. Securities and Exchange Commission (SEC).
“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.”…