By Vlad Schepkov
Shares of Tupperware (NYSE:TUP) are trading over 7% lower in pre-market on Monday, following Friday's announcement of "substantial doubt about its ability to continue as a going concern" and hiring of financial advisors to assist with financing and liquidity initiatives.
Tupperware cited challenges in the business, coupled with increased borrowing costs and cash constraints caused by higher interest costs and timing of re-engineering actions. The company expects to write down certain non-cash assets, and financial results will differ significantly from preliminary results announced earlier this year.
TUP added that "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."
"Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position," said President and CEO Miguel Fernandez. "The Company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position."
Tupperware plans to file its 10-K with the SEC within the next 30 days but noted there can be no assurance that it will be filed at such time.
Shares of TUP are trading over 7% in pre-market on Monday, after a 5% loss on Friday. The stock lost over 40% YTD.