Tupperware in liquidity crisis, is looking for new capital – Corriere.it

Tupperware Brands, which has experienced a resurgence during the pandemic, is now looking for investors to keep it afloat and is in danger of being delisted from the New York Stock Exchange. Shares of Tupperware Brands Corp. plunged nearly 50% on Monday after the company said late last week it had engaged financial advisers to help it secure financing and address its doubts about its ability to continue operating. Sales and profits have steadily declined over the past two years after the pandemic breathed new life into the Orlando, Florida-based food container maker.

The bills

Tupperware reported a loss of 24 cents a share for the fourth quarter in early March, shocking investors who had been expecting a profit of 22 cents a share. Sales, which surged during the pandemic as people stayed home and cooked for themselves, plummeted from nearly $500 million in the fourth quarter of 2020 to just over $300 million in the most recent fourth quarter. The company received a noncompliance notice from the New York Stock Exchange last week for failing to file its annual results with the Securities and Exchange Commission. Preliminary results released to investors last month showed it lost about $35 million in the fourth quarter.

Six months time

Tupperware has six months from the filing due date to regain compliance, although the Exchange may begin the process of delisting the stock at its discretion. Analysts say creditors could potentially call Tupperware over its debt, which the company is unlikely to be able to repay. Chasen Bender, an analyst at Citi, said Tupperware’s creditors appear to be giving the company a 30-day grace period until it files the 10-K (the annual report required by US Consob that provides a comprehensive summary of Tupperware’s financial performance). a company, ed). Bender added that while the company says it is working to finalize the filing, the path forward appears very uncertain.

History

Tupperware said it is considering selling some real estate holdings and other non-core assets to free up cash. Tupperware, which experienced explosive growth in the mid-20th century, was well known for its Tupperware Party, first held in 1948. But it exploded in the years leading up to the pandemic. Before the pandemic resumed, Tupperware had negative sales growth for three consecutive years, according to FactSet. Shares of Tupperware rose about 9% early Tuesday, to $1.35 a share. Shares of the company traded above $4 earlier this year and were close to $40 a share in early 2021.