Monday 4/1/2024
Cash-strapped Tupperware Brands is delaying its annual results due to internal control issues and a shortage of accountants that has been a growing challenge for companies’ finance teams.
The Orlando, Fla.-based reusable-container maker said in a filing Friday that its previous delays in filing its 2022 10-K annual report caused subsequent issues with its quarterly reports. The company said it filed its 2023 quarterly reports on Friday, but those delays pushed back work on its annual report.
reviously disclosed a material weakness in its internal control over financial reporting and warned of its ability to continue operating.
Tupperware said Friday its continuing material weakness had made added procedures necessary in preparing its annual report, which has contributed to delays. The company said its accounting department is experiencing “significant attrition,” which has left the company with strained resources and gaps in skill sets.
Companies over the past year have cited a lack of skilled accounting personnel for material weaknesses in their financial-reporting controls, typically a predictor of restatements. More accountants are retiring without an adequate pipeline of entrants in the profession to fill the void.
The dearth of new accountants has increasingly bled into U.S.-listed companies’ financial statements. The companies have been bigger than the often smaller businesses that historically struggle to draw accounting expertise. For example, Advance Auto Parts last year couldn’t file a quarterly report on time, saying it wasn’t able to attract and retain enough qualified accounting staff to fulfill internal-control responsibilities.
In response to the shortage, some companies have weighed raising salaries and tapping temporary outside help.
Tupperware said retaining a new independent auditor also hampered its ability to submit its form 10-K on time.
In its latest quarterly report, Tupperware booked $259.6 million in revenue for the quarter ended Sept. 30, 2023, down 14% from the prior-year period. It reported a net loss of $55.8 million for the quarter ended Sept. 30.
Last month, Tupperware secured a forbearance agreement with lenders as it explores strategic alternatives.
Tupperware didn’t immediately respond to a request for comment.
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