ORLANDO, FL – Tupperware (NYSE:TUP) Brands Corporation (NYSE:TUP) announced today the upcoming departure of Executive Vice President & Chief Financial Officer Mariela Matute, effective July 31, 2024. According to the company's latest SEC filing, Matute's resignation is not the result of any disagreement with the company's operations, policies, or practices.
The news comes alongside the company's disclosure of an extension to their forbearance agreement with lenders. Tupperware has been in a forbearance agreement with Wells Fargo (NYSE:WFC) Bank, as the administrative agent, and other lenders since February 13, 2024, following undisclosed financial difficulties. The agreement, which has been amended multiple times, includes certain milestones the company must meet related to business planning and repayment transactions.
Originally set to expire on July 7, 2024, the forbearance termination date has now been extended to July 14, 2024, at 11:59 p.m. Eastern time. This extension also applies to the related milestones for entering into a definitive agreement concerning repayment transactions.
The company's stock, which trades on the New York Stock Exchange under the ticker TUP, may be affected by these developments. Investors and market watchers will likely keep a close eye on Tupperware's ability to meet the extended forbearance milestones and the impact of the CFO's departure on the company's financial strategy moving forward.
Tupperware, known for its plastic food storage products, has been navigating through a challenging financial landscape, as indicated by the necessity of the forbearance agreement. The company's ability to adhere to the agreement's terms is crucial for its financial stability.
In other recent news, Tupperware Brands Corporation disclosed that it received a non-compliance notice from the New York Stock Exchange (NYSE) due to a delay in filing its annual report for 2023. The company attributes this delay to late quarterly filings for the first three quarters of 2023, material weaknesses in internal control over financial reporting, and staff attrition in its accounting function. Despite this setback, Tupperware has become current with its quarterly reports as of March 29, 2024, following the appointment of KPMG LLP as its new auditor in late January 2024.
The NYSE notice does not immediately affect Tupperware's stock listing and provides a six-month period for the company to file its Form 10-K with the Securities and Exchange Commission (SEC) and regain compliance. Tupperware has expressed its intent to file the overdue Form 10-K within this remediation period, and could potentially receive an extension of up to six additional months under certain circumstances.
However, in its forward-looking statements, Tupperware noted that there are no guarantees regarding the timing of the completion of its consolidated financial statements or the audit for the fiscal year ended December 30, 2023. These developments are part of the recent updates concerning Tupperware Brands Corporation.
InvestingPro Insights
In light of Tupperware Brands Corporation's recent executive changes and forbearance agreement extension, investors may find the following InvestingPro data and tips valuable for understanding the company's current financial health. Tupperware's market capitalization stands at a modest $63.05 million, reflecting the market's adjusted expectations. The company's revenue has seen a decline of 17.47% over the last twelve months as of Q3 2023, which aligns with analysts' anticipation of a sales decline in the current year. Despite this, Tupperware has maintained impressive gross profit margins of 62.12% during the same period.
However, the stock's performance has been marked by significant volatility, with a 1-month price total return showing a decline of 16.03%, yet a strong return over the last three months at 16.96%. This volatility is a critical point for investors to consider, as noted by the InvestingPro Tips, which highlight the stock's price movements and high volatility. Moreover, the company's short-term obligations exceed its liquid assets, which could raise concerns about its near-term financial resilience.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Tupperware's financial trajectory. Utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to a broader range of expert financial tips to inform your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.