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ORLANDO, FL - Tupperware (NYSE:TUP) Brands Corporation, a well-known producer of plastic products, has been notified of impending delisting from the New York Stock Exchange (NYSE). The notification, which came on September 18, 2024, was due to the company and some of its subsidiaries filing for Chapter 11 bankruptcy.
NYSE Regulation stated that Tupperware's common stock is no longer suitable for listing, prompting an immediate trading suspension. The delisting procedures will be finalized with the Securities and Exchange Commission (SEC), and Tupperware's common stock is expected to be delisted 10 days after the filing.
Following the suspension, Tupperware's common stock began trading on the OTC Expert Market under the symbol "TUPBQ" on September 19, 2024. The OTC Expert Market is a limited market compared to the NYSE, which may result in reduced liquidity and potentially lower trading prices for the stock. The company warned that the stock's trading price might not reflect the actual recovery value for stockholders in the bankruptcy proceedings.
Tupperware emphasized that the shift to over-the-counter markets does not affect its business operations or SEC reporting requirements. However, they cautioned that trading in its securities is highly speculative and risky during the bankruptcy process. Investors are advised that the value of the common stock could significantly decrease depending on the outcome of the Chapter 11 cases.
The company's forward-looking statements acknowledge the uncertainties surrounding its operations during the bankruptcy, including maintaining customer and employee relationships and obtaining court approvals. The duration of the Chapter 11 process and the availability of operating capital are also uncertain.
In other recent news, Tupperware Brands Corporation, known for its food storage products, has filed for bankruptcy protection amid declining demand and increasing financial losses.
The company has also secured an $8 million bridge loan and amended its existing credit agreement, a strategic move aimed at stabilizing its finances. Tupperware has also extended its forbearance agreement with lenders, including Wells Fargo Bank, to August 15, 2024, providing more time to meet its financial obligations.
In addition, the company's Executive Vice President & Chief Financial Officer, Mariela Matute, is set to depart on July 31, 2024. Tupperware has also received a non-compliance notice from the New York Stock Exchange due to a delay in filing its annual report for 2023. Despite these challenges, Tupperware has become current with its quarterly reports as of March 29, 2024, following the appointment of KPMG LLP as its new auditor.
InvestingPro Insights
In light of Tupperware Brands Corporation’s recent financial troubles and subsequent delisting from the NYSE, current metrics from InvestingPro paint a stark picture of the company's performance. With an impressive gross profit margin of 62.12% in the last twelve months as of Q3 2023, Tupperware demonstrates a strong ability to control costs relative to sales. Despite this, the company has experienced a significant revenue decline of 17.47% during the same period. Additionally, the stock's price has seen a dramatic fall with a year-to-date total return of -77.35%, signaling a sharp decrease in investor confidence.
InvestingPro Tips indicate that the stock is currently in oversold territory according to the Relative Strength Index (RSI), which might interest contrarian investors looking for a potential rebound. However, this is tempered by the fact that analysts have revised their earnings expectations downwards for the upcoming period, and predict a sales decline in the current year. For investors considering this stock, it's important to note that Tupperware does not pay a dividend, which might impact investment strategies focused on income generation.
For those seeking further analysis and additional InvestingPro Tips for Tupperware, more detailed insights are available on the platform, providing a comprehensive toolset for evaluating the stock's potential. As of the latest update, there are 17 additional InvestingPro Tips that could help investors make more informed decisions regarding Tupperware's future in the market.
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