Tupperware (NYSE:TUP) Brands Corporation, a well-known manufacturer of plastic products, has announced that it will be delisted from the New York Stock Exchange (NYSE) and will commence trading on the OTC Expert Market. The company's common stock, previously traded under the ticker symbol "TUP," began its OTC market journey on September 19, 2024, under the new symbol "TUPBQ."
This transition follows a notification from NYSE Regulation to Tupperware on September 18, 2024, stating its intent to file a delisting application with the Securities and Exchange Commission (SEC). The delisting is set to become effective 10 days post the filing of the Form 25 by NYSE Regulation. Although Tupperware's common stock will be deregistered from Section 12(b) of the Securities Exchange Act, it will remain registered under Section 12(g) of the same act.
In related news, Tupperware Brands and some of its subsidiaries filed for Chapter 11 bankruptcy on September 17-18, 2024. The proceedings, which are taking place in the United States Bankruptcy Court for the District of Delaware, are aimed at reorganizing the company's debt structure. The Bankruptcy Court has approved procedures to assist Tupperware in preserving its tax attributes during this process.
In other recent news, Tupperware Brands Corporation has been navigating a series of significant developments. The company has filed for Chapter 11 bankruptcy following a period of declining sales and increasing financial losses. In the midst of these challenges, Tupperware secured an $8 million bridge loan and amended its existing credit agreement in a strategic move aimed at stabilizing its finances.
In addition, Tupperware has received a notice of impending delisting from the New York Stock Exchange due to the bankruptcy filing, prompting a shift to over-the-counter markets. The company's stock is now trading on the OTC Expert Market under the symbol "TUPBQ".
In a separate development, Robert Westbrook, a British individual, is facing U.S. extradition charges for hacking into the computer systems of several companies, including Tupperware, to gain insider information on their expected earnings. The U.S. Department of Justice and the Securities and Exchange Commission are pursuing charges against Westbrook for this alleged "hack-to-trade" scheme.
InvestingPro Insights
Recent InvestingPro data paints a challenging picture for Tupperware Brands Corporation, aligning with the company's recent delisting from the NYSE and Chapter 11 bankruptcy filing. The stock has experienced significant declines across multiple timeframes, with a staggering 77.35% year-to-date price total return as of the latest data. This downward trend is further emphasized by the 65.36% drop over the past three months and a 66.5% decline over the past year.
InvestingPro Tips suggest that Tupperware's stock is currently in oversold territory, based on its RSI (Relative Strength Index). This could potentially indicate that the stock's price has fallen more than might be justified, though it's important to note that in the context of bankruptcy proceedings, traditional valuation metrics may be less reliable.
Another relevant InvestingPro Tip highlights that analysts anticipate a sales decline in the current year, which aligns with the company's financial struggles leading to its bankruptcy filing. This projection, combined with the tip that Tupperware suffers from weak gross profit margins, underscores the financial challenges the company faces as it navigates through Chapter 11 reorganization.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into Tupperware's financial situation and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.