Tupperware Brands engages with financial advisors to avoid delisting
Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss the decline in stock for Tupperware Brands.
Video transcript
BRAD SMITH: Consumer products company, global consumer products company Tupperware Brand, engages with financial advisors to help improve its capital structure and near-term liquidity.
OK, so layman's terms here, they're going to try and avoid delisting. They are also, as you're seeing shares down by about 40% here on the day, they're trying to make sure that they are able to avert some of the credit facility crisis that they do have right now. Increased levels and cost of borrowings under that credit facility most recently have become in question.
And this is a company that is listed on the New York Stock Exchange. It seems that they've already received delisting notices. And we will see what action further here the New York Stock Exchange decides to take, should this effort from Tupperware prove ineffective as well.
JULIE HYMAN: Well, you have to wonder about the sort of secular decline in demand maybe for Tupperware products, right. There's a lot of competition. There are other companies like Rubbermaid that make the same stuff. And I don't know about you, but I just save my takeout containers and reuse those.
BRAD SMITH: They work just fine.
JULIE HYMAN: So I'm not buying a lot of Tupperware these days. But obviously, a strong legacy. It has sort of-- it's one of these brands, consumer brands that has sort of sentimental value in a way. You think of Tupperware. I mean, like you might not be old enough for this, but Tupperware parties back in the day, right, that our moms maybe had, I don't know.
BRAD SMITH: Yeah, yeah. Absolutely. I mean, well, so that begs the question did delivery kill Tupperware? Because if we're all just holding on to the containers that get delivered to us, maybe once, twice a week, in some cases, maybe a little more, because I get lazy and don't cook as much as I should, but I still am putting the leftovers from the food that I do cook in the containers that I get on the one, two, maybe three times delivery a week.
JULIE HYMAN: Yeah. So maybe that's what's up.
BRAD SMITH: Uber Eats, the inverse relationship with Tupperware.
JULIE HYMAN: Oh, we should do--
BRAD SMITH: We'll chart it.
JULIE HYMAN: We should chart that somehow.
BRAD SMITH: We'll chart it for you guys.
JULIE HYMAN: Exactly. I like it.
