As part of its ongoing Turnaround Plan, Tupperware Brands has entered into a forbearance agreement with its lenders, a move that is expected to help the company secure more financial flexibility.
The company stated that it is in the process of looking for new options to boost its liquidity, with potential solutions including raising financing from investors and selling its real estate holdings. In the meantime, this new agreement will “reduce its weekly US liquidity to $10 million from $15 million” according to a report by the Wall Street Journal. By making a $10.9 million payment to the lender, Tupperware will have access to the revolving credit facility made clear in their current credit agreement, but capital availability is now limited to $36.4 million.
“With the financial flexibility provided by the forbearance agreement, the company is both continuing to execute on its global business strategy transformation plan, and working closely with financial advisors to run a process to explore strategic alternatives,” the company wrote in a statement.
