Tupperware's debt restructuring deal gave the stock a real reason to rally

The maker of airtight containers gets more financial flexibility to carry on

By Ananya Bhattacharya2 min readUpdated August 4, 2023

Tupperware, a legacy brand in turmoil, is gearing up for a turnaround. It has finalized an agreement with its lenders to restructure its existing debt obligations, the food-storage company announced in a regulatory filing yesterday (Aug. 3).

Founded in 1946, Tupperware grew on the back of household parties and word-of-mouth. Even when it starting selling online, it stuck to its own website for retailing the airtight boxes. But survival in a digital-first world has been tricky for the brand. Last October, it finally lined big-box retailer Target $TGT’s offline and online shelves. Still, the business, unlike its containers, was far from airtight. By this April, Tupperware expressed “substantial doubt” about its ability to continue, citing over $700 million of debt and declining sales.

The new agreement will improve the company’s overall financial position “by amending certain credit obligations and extending the maturity of certain debt facilities,” Orlando, Florida-headquartered firm said in its press release.

One big number: Tupperware’s stock surge

57%: How much Tupperware’s shares soared in pre-market trading at the time of writing. At market close, the stock jumped 90%, putting the share price close to a nine-month high of $7, before coming down to the $5.50 mark. The stock, recently drew delisting warning letters from the New York Stock Exchange (NYSE) for hovering below the $1 mark apiece, was already up manifold from its mid-July owes for another reason—it’s the latest target of retail investors’ meme stock mania.

Closer look: Terms of Tupperware’s restructuring agreement

Reduction and reallocation of approximately $150 million of cash interest and fees;
Extension of the stated maturity of approximately $348 million of principal and reallocated interest and fees to fiscal year 2027 with PIK [payment-in-kind] interest;
Reduction of amortization payments required to be paid through fiscal year 2025 by approximately $55 million, and
Immediate access to revolving borrowing capacity of approximately $21 million.

Charted: Tupperware is weighed down by falling sales

Quotable: Tupperware’s comeback from the brink of bankruptcy

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. We are committed to making ongoing progress in improving liquidity and strengthening our capital structure. —Mariela Matute, Tupperware’s chief financial officer in a statement on Aug. 3

One more thing: Where are Tupperware’s second-quarter earnings?

Tupperware was supposed to report quarterly earnings earlier this week, but an Aug. 3 Securities and Exchanges Commission (SEC) form revealed its results will be delayed.

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