Tupperware flags accounting strains in late 10-K notice

Dive Brief:

Reusable-container maker Tupperware Brands said it would be unable to file its form 10-K on time, marking the second consecutive year the company will have a delay in the filing of an annual report, according to a Securities and Exchange Commission filing Friday signed by CFO Mariela Matute.
The Orlando, Florida-based company cited significant delays in completing its 2022 10-K and subsequent reports along with ongoing “material weaknesses” in internal controls over financial reporting that necessitate additional procedures, as well as strains on its accounting team as contributing to the delay in the 2023 annual filing.
“The Company’s accounting department has experienced, and continues to experience, significant attrition which has resulted in resource and skill set gaps, strained resources, and a loss of continuity of knowledge — all of which contributed to delays in the filing of the 2023 Form 10-K,” the company stated in the SEC filing.

Dive Insight:

While the company did not respond to requests for comment, news of the struggling firm’s late filing and strained internal financial reporting resources comes as the accounting industry is struggling with a shortage of new talent as fewer students are choosing to go into the profession. It is not clear if this broader trend exacerbated Tupperware’s strained accounting resources.

The late filing is also the latest in a string of financial woes that the once-iconic container-maker has been battling with for some time.

It comes roughly five months after its long-time former independent auditor PricewaterhouseCoopers informed Tupperware that it was “declining to stand for re-appointment” as the company’s public accounting firm, although the financial statements for fiscal years ended Dec. 25, 2021 and Dec. 31, 2022 contained “no adverse opinion.” The company disclosed in January that it had retained KPMG as its new auditor, according to the filing.

In the filing, the company noted that there was continuing “substantial doubt” about its ability to continue as a going concern.

Following months of operational distress, Tupperware last August announced a debt restructuring agreement with lenders. In addition to other executive changes, the company appointed a new CEO in October as it sought to turn around the business, according to Industry Dive’s sister publication Retail Dive.

In an SEC filing Friday, the company reported a net loss of $125.1 million for the 39 weeks ended Sept. 30 compared to restated net income of $12.2 million in the year-earlier period.