Many businesses were failing ahead of the pandemic, but the COVID-19 financial market frenzy gave them a second life. As rates normalized, however, investors refocused on their poor business fundamentals and sent shares lower again. 🕵️
That’s happened with Bed Bath & Beyond, AMC, and others, including…Tupperware Brands.
Shares of the home products company fell nearly 99% from mid-’17 through March ’20. They then rallied about 3,300% through January ’21. And they’ve fallen 97% back to their all-time lows since.
Zooming into today’s action, the stock fell 50% after the company issued a regulatory filing late Friday saying there’s “substantial doubt about the company’s ability to continue as a going concern.” Of course, things generally aren’t great when a company releases news late on a Friday. However, this filing also alerted investors because it was done on a day when the market was closed. 📝
The company said it will not have enough cash to fund its operations if it cannot secure additional financing. While management is exploring cost-cutting measures, its asset-light business model leaves it with few opportunities to raise cash quickly. The New York Stock Exchange also warned the company that it remains in danger of being delisted for not filing an annual report. ⚠️
Last November, the company issued another “going concern” warning and has failed to turn things around since then. The seventy-seven-year-old company used to thrive on its innovative kitchen gadgets but has lost its touch and is struggling to attract the younger consumer demographic. Despite a new partnership with Target, the company’s sales remain dismal.
Speaking of struggling businesses, Bed Bath & Beyond issued important information ahead of its Special Meeting of Shareholders on May 9. Shares were down over 4%. 🔻