Dive Brief:
- In a move that has increased its stock price, Tupperware Brands Corporation announced a finalized agreement with lenders to restructure its debt, according to a company press release Thursday.
- Tupperware’s agreement includes the reduction or reallocation of $150 million in cash interest and fees, access to a revolving borrowing capacity of about $21 million, a reduction in certain amortization payments and the extension of certain stated maturity.
- The company said the agreement improves its overall financial position and will allow it to continue its turnaround efforts.
Dive Insight:
Tupperware’s latest announcement follows months of operational and financial distress at the company.
"I am confident that this agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts as well as our long-term strategy to create a global omni-channel consumer brand,” Mariela Matute, chief financial officer of Tupperware Brands Corporation, said in a statement. “We are committed to making ongoing progress in improving liquidity and strengthening our capital structure. We appreciate the support of our lenders, who share in our strategy, as we move forward."
The company — which released a Tupperware collaboration with Vera Bradley in June — received a non compliance warning letter from the New York Stock Exchange in April after the company did not file its annual report with the U.S. Securities and Exchange Commission in a timely manner.
Tupperware also issued a going concern warning noting that it might not have enough capital to fund its operations and could shut down its operations if it couldn’t secure more resources or amend some of its credit agreements. In the months following, Tupperware missed its deadline to file its annual and quarterly reports and hired a chief restructuring officer.
On May 30, Tupperware said in a company filing that it expected to file its annual 10-K report by mid-July and its latest 10-Q quarterly report by early September. At the time of publishing, neither report has been filed.
