Meme Tupperware Stock Jumps as Debt Restructuring Deal Ignites Retail Army

Aug 4 (Reuters) – Tupperware Brands shares (TUP.N) rose 44% on Friday, after the maker of kitchen storage bins finalized a debt restructuring deal as it tries to turn its business around, reinvigorating retail investor interest in the company.

The Florida-based firm raised questions in April about its ability to continue as a going concern as it battles declining sales.

Tupperware said Thursday that it had reached a agreement with your lenders, which will help reduce or reallocate about $150 million in interest and cash fees, and give you immediate access to about $21 million in revolving lending capacity.

The deal “provides a lifeline, although the market environment can be extremely difficult,” said Bartosz Sawicki, a market analyst at financial services firm Conotoxia.

After a surge in demand for Tupperware food storage containers during lockdown, the company has seen sales volumes drop since 2022.

Widely recognized for its brightly colored plastic airtight containers, the company recently caught the attention of retailers, helping drive a share increase of more than 449% in the last three weeks.

Tupperware was the fourth most promoted stock on investor-focused social media, stocktwits.com on Friday.

It was the seventh most traded stock by retail investors as of 10:00 am ET, according to JPMorgan data.

The price rally suggests that “many market participants were watching the company for this development,” said Peter Earle, an economist at the American Institute for Economic Research.

The stock gains were reminiscent of “meme stock” rallies, where retail investors coordinate on social media and typically focus their speculative bets on companies that were in financial distress or had high short-term interest.

Research firm Ortex estimated that 30.8% of Tupperware’s publicly available shares were short. Bear investors have lost $33 million on paper in the past three weeks.

Tupperware was the second most traded single stock by retailers over the past week, according to a JPMorgan note.

The company had a market capitalization of $156.56 million on Thursday, after losing about 87% of its value since the end of 2020.

Yellow (YELLOW.O) and American Superconductor Corp. (AMSC.O)the other meme stocks active over the past week, were up 17% and 4.3%, respectively, on Friday.

Reporting by Medha Singh and Savyata Mishra in Bengaluru; Edited by Krishna Chandra Eluri

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