Tupperware stock surges nearly 50% after debt restructuring deal
Shares of Tupperware Brands shot up nearly 50% on Friday on the heels of a 90% jump in after-hours trading the previous day after the struggling kitchen storage container maker announced a debt restructuring deal.
The Florida-based company, known for its bright-colored plastic airtight containers, raised doubts in April about its ability to continue as a going concern as it struggles with slumping sales.
On Thursday, Tupperware announced it had struck an agreement with its lenders which will help reduce or reallocate about $150 million of cash interest and fees, and would give it immediate access to a revolving borrowing capacity of about $21 million.
The agreement “provides a lifeline, yet the market environment may prove to be extremely difficult,” said Bartosz Sawicki, market analyst at financial services firm Conotoxia.
After a surge in demand for Tupperware containers to store food during the lockdown, the company has witnessed a slide in sales volumes since 2022.
Tupperware has tapped New York-based turnaround management firm Alvarez & Marsal.
The move will “improve the company’s overall financial position by amending certain credit obligations and extending the maturity of certain debt facilities,” the company said.
![Tupperware announced that it struck a debt restructuring deal, causing a stock surge that began in after-hours trading on Thursday
and sent share prices soaring as much as 55.96% as of Friday morning.](https://cdn.statically.io/img/nypost.com/wp-content/uploads/sites/2/2023/08/NYPICHPDPICT000013000880.jpg?w=1024)
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 has been slashed to about $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
Representatives for Tupperware did not immediately respond to The Post’s request for comment.
Tupperware shares closed up 36% to $4.77 on Friday, leaving it with a market value of $212.2 million — a stark increase after losing about 63% off its value over the past 12 months.
In 2022, Tupperware recorded revenue of $1.3 billion — a dip from the $1.69 billion it did in sales in 2021 and a hefty drop from the $1.74 billion in 2020.
The company has posted negative sales growth in five of the last six years — a trend that seemed to be accelerating so far this year.
Launched in 1946, Tupperware was the creation of chemist Earl Tupper, whose seal-tight design was inspired by paint cans. The brand was soon a household name.
In the late 1940s, a single Detroit mom named Brownie Wise began hosting get-togethers to peddle Tupperware, inspiring other women to do the same.
![Tupperware held a market value of $217.5 million as of Friday morning -- a stark increase after losing about 63% off its value over the past 12 months.](https://cdn.statically.io/img/nypost.com/wp-content/uploads/sites/2/2023/08/NYPICHPDPICT000019104157.jpg?w=865)
Tupperware Ladies and Tupperware Parties became an icon of midcentury suburban living and an early form of multilevel marketing.
In the decades that followed, numerous other brands entered the seal-tight container market. Tupperware enthusiasts have a deep love of the brand, but they admit its best years are in the past.