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The
Florida-based firm is making an attempt to turn around its
business after raising doubts in April about its ability to
continue as a going concern as it struggles with slumping sales.
Tupperware said on Thursday 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.
Widely recognized for its bright-colored plastic airtight
containers, the company had recently caught retail traders'
attention, which has helped drive a more than 449% share surge
over the past three weeks.
Tupperware was the fourth most touted stock on investors-focused
social media, stocktwits.com on Friday.
The share gains were reminiscent of eye watering rallies for
"meme stocks" including AMC and GameStop, where retail investors
would band together on social media and typically focus their
speculative bets on companies that were financially struggling
and had high short interest.
Analytics firm Ortex estimated 30.8% of Tupperware's publicly
available shares were shorted. Bearish investors have lost $33
million on paper in the past three weeks, taking their
year-to-date losses to $15.4 million.
Measured by number of trades, Tupperware was the second most
actively traded single stock by retail traders over the past
week, Peng Cheng, strategist at J.P.Morgan, wrote in a note late
Wednesday.
Tupperware held a market value of $156.56 million as of
Thursday's close, after losing about 63% off its value over the
past 12 months.
Other active meme stocks over the past week include Yellow and
Nio Inc, Cheng said.
(Reporting by Medha Singh in Bengaluru; Editing by Krishna
Chandra Eluri)
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