Shares of Tupperware Brands skyrocketed by 53.1% in premarket trading on Friday after finalizing a debt restructuring deal, reigniting interest from individual investors in the company.
The Florida-based firm is striving to turnaround its business following concerns raised in April about its ability to continue as a going concern due to declining sales.
Tupperware announced on Thursday that it had reached an agreement with its lenders to reduce or reallocate approximately $150 million in cash interest and fees. The agreement also provides immediate access to a revolving borrowing capacity of around $21 million.
This Aug. 5, 2011 file photo shows colorful Tupperware products in Bellflower, Calif.
Garrett Cheen/AP file photo
Tupperware, known for its vibrant plastic airtight containers, recently gained attention from retail traders, leading to a more than 449% surge in its share price over the past three weeks.
Tupperware was the fourth most popular stock on stocktwits.com, a social media platform for investors, on Friday.
The increase in shares reminded investors of the astounding rallies seen in “meme stocks” like AMC and GameStop, where retail investors band together on social media to speculate on financially struggling companies with high short interest.
Analytics firm Ortex estimated that 30.8% of Tupperware’s publicly available shares were shorted. Bearish investors have suffered paper losses of $33 million over the past three weeks, bringing their year-to-date losses to $15.4 million.
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