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  • Tupperware stock soars 90% after debt restructuring agreement

    Tupperware stock soars 90% after debt restructuring agreement

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    Tupperware Brands Corp.’s stock climbed more than 90% in extended trading Thursday after the beleaguered maker of iconic food containers announced a debt restructuring agreement.

    The surge sent the stock hurtling toward a nine-month high. In a statement released after market close, Tupperware
    TUP,
    -4.09%
    said that it has finalized an agreement with its lenders to restructure its existing debt obligations. The agreement will improve the company’s overall financial position by amending certain credit obligations and extending the maturity of certain debt facilities to allow it to continue with its turnaround efforts, Tupperware said.

    The agreement provides for the reduction/reallocation of $150 million in interest and fees, and an extension of the stated maturity of approximately $348 million of principal and reallocated interest and fees to fiscal year 2027 with payment-in-kind, or PIK, interest.

    Related: Tupperware and Yellow have skyrocketed, but don’t confuse them with meme stocks

    Tupperware also announced the reduction of amortization payments required to be paid through fiscal year 2025 by approximately $55 million, and immediate access to a revolving borrowing capacity of approximately $21 million.

    “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,” Tupperware CFO Mariela Matute said in the 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.”

    Related: How ‘left-for-dead’ Tupperware became a buzzy trading play

    In April, Tupperware issued a going-concern warning, essentially cautioning that it could go bust. The beleaguered company also announced the hiring of financial advisers to help it navigate its near-term challenges. On July 7, Tupperware said that it had entered a waiver agreement with some of its creditors.

    Also on Thursday, Tupperware said that its second-quarter earnings report will be filed late. In an SEC filing, Tupperware explained that it is unable to file its report for the quarter ended July 1 by the prescribed due date. Tupperware cited “the time and effort” required to complete its consolidated financial statements for its Form 10-K annual report for the fiscal year ended Dec. 31, 2022 and the Form 10-Q for the quarter ended April 1, 2023. “The company will be unable, without unreasonable effort or expense, to complete and file the Q2 Form 10-Q within the prescribed time period,” it said. “As previously disclosed on its Form 8-K on April 7, 2023, the Company is continuing its restatement of previously issued financial statements and the financial statement close process for the year ended December 31, 2022.”

    Since the 8-K filing, Tupperware has “identified additional prior period misstatements and additional material weaknesses in internal control over financial reporting,” the company said. The April 7 8-K filing also disclosed the company’s “substantial doubt” about Tupperware’s ability to continue as a going concern. “While the Company is still completing its second-quarter 2023 financial close process, it expects that its Q2 Form 10-Q will reflect a material decline in revenues for the quarter ended July 1, 2023 as compared to the quarter ended June 25, 2022,” Tupperware said in the filing. “The Company believes that its preliminary estimated revenue results for the quarter ended July 1, 2023 will be within the range of $260-$270 million.”

    Related: Tupperware stock skyrockets to a record 434% gain in July

    Tupperware’s stock has skyrocketed recently, despite a dearth of fresh news. Nonetheless, Tupperware should not be confused with a meme stock, according to Samantha LaDuc, founder of LaDucTrading.com. Tupperware’s recent trading activity is also reminiscent of spikes in other names also recently seen as “left for dead,” as  LaDuc put it to MarketWatch last week.

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  • TUP Stock Price | Tupperware Brands Corp. Stock Quote (U.S.: NYSE) | MarketWatch

    TUP Stock Price | Tupperware Brands Corp. Stock Quote (U.S.: NYSE) | MarketWatch

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    Tupperware Brands Corp.

    Tupperware Brands Corp. operates as a direct-to-consumer marketer of products across multiple brands and categories. It operates through the following geographical segments: Europe, Asia Pacific, North America and South America. product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand, and beauty and personal care products through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics and Nuvo brands. The company was founded on February 8, 1996 and is headquartered in Orlando, FL.

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  • Tupperware and Yellow have skyrocketed, but don’t confuse them with meme stocks

    Tupperware and Yellow have skyrocketed, but don’t confuse them with meme stocks

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    All eyes have been on shares of Tupperware Brands Corp. and Yellow Corp. in recent days as the stocks have soared despite a dearth of fresh news in the case of the former, and negative news in the case of the latter.

    Shares of the beleaguered maker of iconic food-storage containers enjoyed a record 434% gain in July on no apparent news. Yellow’s stock
    YELL,
    -26.15%
    has also skyrocketed, despite reports that the trucking company is facing bankruptcy.

    Over the weekend the Wall Street Journal reported that the less-than-truckload company has shut down operations as it prepares for bankruptcy. On Monday the International Brotherhood of Teamsters said it was served legal notice that Yellow was “ceasing operations and filing for bankruptcy.” MarketWatch has reached out to Yellow with a request for comment.

    Related: How ‘left-for-dead’ Tupperware became a buzzy trading play

    Set against this backdrop, the surging share prices for Tupperware
    TUP,
    -25.99%
    and Yellow have sparked comparisons with the meme stock phenomenon, where discussions on social media can send share prices surging. This trend turned companies such as AMC Entertainment Holdings Inc.
    AMC,
    -3.45%
    and GameStop Corp.
    GME,
    -4.42%
    into meme stock “darlings” in recent years. But Samantha LaDuc, founder of LaDucTrading.com, says there’s a different explanation for what’s been happening to shares of Tupperware and Yellow.

    “Literally, it’s short covering, as the paired trade of long quality, short junk unwinds,” she told MarketWatch, via email. “And it typically always precedes volatility.”

    Short selling of a stock occurs when an investor borrows shares and sells them immediately expecting the price to drop. The shares can then be repurchased and returned to the lender, with the investor pocketing the difference. Although sometimes vilified, short sellers are actually misunderstood, Robert Sloan, managing partner at financial analytics firm S3 Partners and author of “Don’t Blame the Shorts,” recently told MarketWatch.

    Related: Short selling stocks — and trying to play short squeezes — can be very dangerous

    In a letter to investors this week, Dan Loeb, the chief executive of the hedge-fund firm Third Point, explained that short selling is much more challenging today than it has been historically.

    “Fundamental analysis is increasingly taking a back seat to monitoring daily option expiries and Reddit message boards, as evidenced by the numerous short squeezes and manipulations of heavily shorted stocks such as AMC and GameStop in 2021 and others this year,” he wrote. “While we have not abandoned short selling, we continue to reduce our single-name short exposure in favor of market hedges and short baskets.”

    LaDuc explained that in June and July hedge funds aggressively covered shorts in global equities, and also noted the trend of FOMO, or fear of missing out.

    “We have had the largest six-month increase in leverage on record (according to Goldman), with a clear case of FOMO-the-MOMO [momentum] chase in full view as concentration risk in megacap tech forced a NASDAQ “SPECIAL REBALANCE” to ‘down-weight’ AAPL, MSFT, GOOGL etc.”

    Related: Short sellers are not evil, but they are misunderstood

    Short covering occurs when a person with a short position buys back the shares, ending the short trade, and returns the shares to the seller. With this strategy, the short seller aims to cover after the share price falls and make a profit. They may also cover if the price goes up to limit their losses.

    Last week LaDuc told MarketWatch how she was able to anticipate a Tupperware stock spike despite a dearth of traditional market-moving news around the name.

    Tupperware’s stock has continued its upward trajectory, rocketing again on Tuesday. The stock eventually ended Tuesday’s session up 26% at $5.38, with LaDuc warning her clients of the risks involved in a parabolic rally. “I suggested to clients it was likely done and to be very cautious if still long because ‘Parabolas are trapped longs that can trigger volatility which can trigger a liquidation event’.”

    Related: Yellow’s stock quadruples in 2 days even after reports that bankruptcy is coming

    Shares of Tupperware are down 23.2% Wednesday. Yellow Corp.’s stock, which ended Tuesday’s session up 121.6%, is down 17.3% Wednesday.

    With regard to Yellow Corp. LaDuc attributes its recent stock movements to insider and Wall Street manipulation. “Low priced, low-float stocks are VERY easy to push around,” she told MarketWatch.

    Bankrupt companies such as Bed Bath & Beyond Inc.
    BBBYQ,
    +1.46%
    have even proven attractive to some investors recently, sparking comparisons with the meme stock phenomenon.

    “They are clearly retail investors, largely on the Robinhood 
    HOOD,
    -4.16%
     platform, that are readers of Reddit,” Howard Ehrenberg, a bankruptcy and reorganization practice partner at law firm Greenspoon Marder, told MarketWatch last month. “They are people buying on rumor and hoping that by participating in a mass purchase binge, they will make money.”

    Related: Tupperware stock skyrockets to a record 434% gain in July

    Hertz Global Holdings Inc.
    HTZ,
    -1.73%    ,
    which filed for bankruptcy protection in 2020 and exited bankruptcy the following year, also fueled meme-stock comparisons, when mostly retail investors piled into the stock during the bankruptcy process.

    Typically in a bankruptcy, shareholders are wiped out as creditors take control of the remaining assets. But those investors were rewarded when the company got a big capital injection and was able to resume trading on an exchange.

    The investor behavior around these types of stocks has caught the attention of academics. Victor Ricciardi, visiting finance faculty at Tennessee Tech University and co-author of the new book “Advanced Introduction to Behavioral Finance,” recently described some of the behaviors that can prompt investors to purchase bankrupt stocks.

    “Representativeness bias refers to when past performance influences how an individual perceives an investment,” Ricciardi told MarketWatch via email last month. “In particular, a person makes a general assumption about a small sample of information or experience.”

    Related: Why investors gamble on shares of bankrupt companies — Bed Bath & Beyond, for example

    So, for example, if a person made a substantial gain from a previous bankrupt stock they might conclude that all bankrupt stocks result in investment gains, according to Ricciardi. There are also parallels with gambling.

    “The notion of the long shot bias is based on the tendency for people to overweight the probability of a long shot bet paying off, especially in horse racing and lotteries,” Ricciardi added. “This is driven by overconfident behavior and dreams of becoming a millionaire overnight.”

    Tupperware’s stock has risen 250.6% in the last three months, while Yellow shares have climbed 84.3%.

    Tomi Kilgore and Phil van Doorn contributed to this report.

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  • Tupperware stock tumbles toward snapping five-day win streak in which it soared more than 300%

    Tupperware stock tumbles toward snapping five-day win streak in which it soared more than 300%

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    Shares of Tupperware Brands Corp.
    TUP,
    -31.78%
    tumbled 18.8% in morning trading Wednesday, which puts them on track to snap a five-day win streak, and to suffer the biggest one-day drop since it sank 27.5% on May 8. The food-storage container company’s “meme”-like stock, which closed Tuesday at the highest price since Nov. 15, 2022, had rocketed 304.5% over the previous five-sessions, and skyrocketed 767.7%. amid a 10-session stretch through Tuesday in which it had gained nine times. The stock has run up 273.5% over the past three months, but was still down 39.3% over the past 12 months, while the S&P 500
    SPX,
    -1.38%
    has gained 10.8% over the past year.

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  • Tupperware stock skyrockets toward a record 450% gain in July

    Tupperware stock skyrockets toward a record 450% gain in July

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    Tupperware Brands Corp.’s stock skyrocketed Monday, and has more than tripled amid a four-day win streak, as the shares of the beleaguered maker of iconic food-storage containers continued their meteoric rally.

    The stock soared 44.5% in midday trading, to put it on track for the highest close since Feb. 3, 2023, and has rocketed 234.6% amid a four-day win streak.

    Monday’s rally adds to the stock’s 242.2% rally last week, which was the biggest one-week gain since it went public in May 1996.

    So far in July, it has blasted 456.4% higher, which would also be a monthly record. The previous record was the 224.8% gain seen in July 2020.

    Related: How ‘left-for-dead’ Tupperware became a buzzy trading play

    The stock’s historic rally kicked off after closing at a record low of 62 cents on July 18. The daily gains have been highlighted by the record 75.6% jump on July 24, despite no news being reported.

    Since the record low close, the stock has soared more than 7-fold (up 617.7%).

    Related: Tupperware’s market cap almost triples as stock continues to skyrocket


    FactSet, MarketWatch

    Amid its surging share price, the company’s market capitalization has reached $196.96 million. On July 7, when Tupperware said that it had entered a waiver agreement with some of its creditors, the company’s market cap hovered around $33 million.

    Tupperware’s recent trading activity is reminiscent of spikes in other names also recently seen as “left for dead,” as Samantha LaDuc, founder of LaDucTrading.com, put it to MarketWatch last week.

    The latest exchange data showed that short interest in Tupperware’s stock, or bearish bets made, had climbed to a three-year high of 9.69 million shares, which 27% of the public float, or shares readily available for the public to trade. Read more about short selling and how it works.

    In comparison with a stock that some say has been subject to a rally induced by bearish investors covering their short bets, often referred to as a “short squeeze,” Sirius XM Holdings Inc.’s
    SIRI,
    -0.20%
    short interest represented 30.8% of its public float.


    FactSet, MarketWatch

    In its preliminary full-year results reported in March, Tupperware sported an 18% sales decline compared with the prior year. Back then, Tupperware Chief Financial Officer Mariela Matute said in a statement that 2023 was expected to be a transition year for the company as it worked to stabilize its business and get on better financial footing.

    Related: Tupperware’s stock craters after food-storage company warns it may go bust

    The following month, Tupperware issued a going-concern warning, essentially cautioning that it could go bust. Tupperware also announced the hiring of financial advisers to help it navigate its near-term challenges.

    The company is projected to release its next quarterly report later this week, according to FactSet.

    Emily Bary, Claudia Assis and Tomi Kilgore contributed.

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  • Tupperware’s stock sees largest daily gain on record amid meme-like surge

    Tupperware’s stock sees largest daily gain on record amid meme-like surge

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    Tupperware Brands Corp. shares enjoyed their best day on record Monday despite an apparent absence of news related to the beleaguered seller of kitchen and home products.

    The stock shot up more than 75% Monday in meme-like trading action and amid vastly higher-than-average volume. The surge marked Tupperware’s
    TUP,
    +75.56%
    largest one-day percentage gain yet, surpassing the prior record of a 67.7% increase on July 29, 2020, according to Dow Jones Market Data.

    Just shy of 130 million Tupperware shares changed hands on the day, easily breaking the record of 42.7 million shares traded, also set on July 29, 2020. The name’s 30-day average volume is about 2.4 million shares.

    The stock finished Monday at $1.58 to record its highest close since April 6, 2023, according to Dow Jones Market Data.

    Tupperware shares remain off 62% so far in 2023 amid serious challenges for the company. It issued a going-concern warning in April and disclosed that it has hired financial advisers, and it said earlier in the year that it had discovered misstatements in past financial reports.

    Don’t miss: Why investors gamble on shares of bankrupt companies — Bed Bath & Beyond, for example

    The company’s website doesn’t appear to show any recent filings or press releases that would have driven Monday’s stock move. Tupperware didn’t immediately respond to a MarketWatch request for comment about the day’s trading activity.

    Tupperware’s stock is up 136% over a two-session span, with the rally coming as investors don’t necessarily seem spooked by companies sporting bankruptcy risk. Used-car retailer Carvana Co.
    CVNA,
    +1.36%    ,
    once thought to be on the brink of failure, has seen its shares come roaring back this year, up nearly 900% over the course of 2023.

    See more: Carvana’s stock has roared back from the brink. This chart shows its meteoric surge.

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  • Tupperware’s stock craters after food-storage company warns it may go bust

    Tupperware’s stock craters after food-storage company warns it may go bust

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    Tupperware Brands Corp.’s stock slid 45% Monday to the lowest level in three years, after the maker of food-storage goods issued a going-concern warning late Friday, saying it has hired financial advisers to help navigate its near-term challenges.

    The news is just the latest blow to the company
    TUP,
    -46.90%    ,
    whose products were once a fixture in American homes, made popular in the 1950s by stay-at-home moms who would gather at special parties to introduce the product line to friends and family.

    The company’s website opens on an image from the Amazon Prime show “The Marvelous Mrs. Maisel,” with the title character hosting her own party and showing friends a pastel-colored vintage line.

    That direct-selling model is no longer fashionable in the U.S., although it has traction in markets like Indonesia, where women have limited earnings opportunities but often gather to eat and drink.

    From the archive: You won’t believe what Tupperware says is a key challenge

    The company has struggled for years to retain its selling force, which has been shrinking thanks to the proliferation of other gig-economy opportunities around the world. 

    In March, the company told analysts on its fourth-quarter earnings call that the sales force fell 18% last year.

    That wasn’t even the worst news from that call, because Tupperware had warned in its earning release that it had identified weakness in internal control over financial reporting and that it expected to restate prior financials.

    On Friday, it said that once it finalizes its 10-K annual report, which is now late, that the numbers announced in March would differ significantly from the restated numbers. It expects to file the 10-K with the Securities and Exchange Commission in the next 30 days.

    Then there’s the issue of the company’s debt burden, which has led to repeated efforts to squeeze concessions from bank lenders so it can remain compliant with financial covenants.

    See now: Tupperware stock craters after company warns its debt burden may force it out of business

    Due “to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its credit facility, the company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near term,” the company said on Friday.

    Chief Executive Miguel Fernandez said Tupperware had embarked on a journey to turn around its operations and address its capital and liquidity positions.

    The company is looking for additional financing and is discussing its options with potential investors or financing partners. Tupperware is also reviewing its real-estate portfolio with an eye toward potential sales or lease-back transactions, it said.

    On its third-quarter earnings call in November, Fernandez acknowledged that some of the company’s problems are of its own making. “The global macro environment continues to be challenging, and we are not executing internally at a level or consistency that we believe we should be,” he told analysts on the call, according to a FactSet transcript.

    One key challenge is connecting with younger consumers, who are unlikely to attend Tupperware parties. The company started to sell its goods at 1,900 Target
    TGT,
    +2.12%
    stores in the U.S. at the start of the third quarter as part of a strategy of reducing its reliance on direct selling.

    But those sales accounted for just 1% of total sales in the fourth quarter, suggesting the strategy has not gained traction.

    One challenge facing Tupperware is price. Amazon
    AMZN,
    -0.27%
    and other retailers such as dollar stores offer far cheaper food-storage containers. In addition, Americans are increasingly shopping online.

    Tupperware’s stock has fallen 98% in the last 12 months, while the S&P 500
    SPX,
    -0.12%
    has fallen 9%.

    Also from the archives: Think the Avon Lady is American? Think again

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