Tupperware Brands' Accounting Quagmire Leads To Delay In Filing Annual Results

Tupperware Brands Corp TUP disclosed in a filing that its previous delays in filing the 2022 10-K report caused subsequent issues with its quarterly reports.

The company filed the 2022 Form 10-K on October 13, 2023. The company emphasized that the significant delay in completing the 2023 Forms 10-Q has contributed to the delay in filing the 2023 Form 10-K.

Material weaknesses in internal control over financial reporting are also causing a delay in preparing and filing the company's 2023 Form 10-K.

Tupperware said it is facing significant attrition, which has resulted in resource and skill set gaps, strained resources, and a loss of continuity of knowledge.

Tupperware contends with liquidity woes and accounting setbacks, having lost PricewaterhouseCoopers as its accounting firm., reported the Wall Street Journal.

Financial-reporting challenges due to the shortage of skilled accountants persist across industries, impacting companies of all sizes. Advance Auto Parts Inc AAP, for instance, faced similar struggles in meeting internal-control obligations, as per the report.

In its recent quarterly report, Tupperware recorded a $259.6 million revenue, a 14% decrease from the prior year, and a $(55.8) million net loss for the September 30, 2023 quarter.

As previously disclosed in a Current Report on Form 8-K filed on January 29, 2024, the company retained KPMG LLP as its new independent auditor for fiscal year 2023 periodic reports.

The former auditor's report for the fiscal year ended December 31, 2022, included an explanatory paragraph indicating that there was substantial doubt about the company's ability to continue as a going concern. The company notes that such substantial doubt is continuing.

Price Action: TUP shares are trading flat at $1.34 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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